Reader Service # 3 NOV. 2010 • VOL. 26 • NO. 11 • $9.90

p.32 p.91 features departments

32 SIX NO-CRY WAYS TO SELL MERCHANDISING REVIEWS MORE IMPORTED SWEET ONIONS THIS WINTER 91 Six Ways To Merchandise cover story South American productions kicks off the Citrus Year-Round season that wraps up in Mexico in April. With a little creativity and imagination, it’s possible to leverage sales and generate 23 GOING GLOBAL 40 CENTRAL AMERICAN PRODUCE: repeat buyers year-round. Retailers find direct sourcing is fraught SUCH BOUNTY, SO CLOSE with challenges. With winter almost here, look to Central 98 Eight Ways To Boost Banana Sales America for high-quality fruits and vegeta- Bananas are among the strongest produce commentary bles unavailable from domestic sources. performers and deserve retailers’ attention with eye-catching displays, creative 8 THE FRUITS OF THOUGHT 45 MEXICAN AVOCADOS FILL cross-merchandising and informative POS. Return To New York THE VOID LEFT IN DOMESTIC OFF SEASON 103 Eight Simple Steps To Maximize 111 RETAIL PERSPECTIVE With a truly year-round crop, avocados Peruvian Asparagus Sales Trust Is The Cornerstore Of Traceability from Mexico keep retail shelves full and Getting back to basics will help retailers consumers happy. build increased profits with Peruvian 112 EUROPEAN MARKET asparagus. GlobalGAP Version 4 Has Europe 50 THE RISE OF INDEPENDENTS AND And U.S. Moving Closer Together THE RESURGENCE OF THE On Farm Certification AMERICAN DREAM DRIED FRUIT AND NUTS Fresh produce sales climb as independent in this issue markets grow. 106 Holiday Baking With Dried Fruit And Nuts 4 THE QUIZ 55 HOT STRATEGIES FOR Moving beyond the traditional holiday WINTER MERCHANDISING fruitcake, dried fruit and nuts find a pro- 6 WASHINGTON GRAPEVINE Bring in consumers from the cold with motable place among holiday ingredients. hot deals and displays in the produce 10 PRODUCE WATCH department. FLORAL AND FOLIAGE MARKETING 12 LETTERS TO THE EDITOR 64 JUICE UP THE PRODUCE DEPARTMENT 108 The Mother Of All Bouquet Seasons 16 RESEARCH PERSPECTIVES The lure of healthful fresh juices leads With 2011 offering a late Easter, floral bou- consumers and competitors deeper into quet companies encourage retailers to order 17 COMMENTS AND ANALYSIS the produce department. early for spring holidays. 110 FLORAL WATCH 69 REGIONAL MARKET PROFILE: THE CHANGING FACE OF 113 INFORMATION SHOWCASE ATLANTA’S PRODUCE MARKET New languages and demographic groups 114 BLAST FROM THE PAST mean new products and a shifting interest special features in consumer demands.

13 RISING STAR RECEPTION 20 25 INNOVATIONS THAT 75 NEW YORK SHAPED THE INDUSTRY FOOD SCENE 18 FROM THE PAGES OF Following the cover story from last Local produce is the talk of this foodie town, THE PERISHABLE PUNDIT month’s 25th Anniversary Edition of be it in a metro-urban supermarket, a new School districts need to be certain PRODUCE BUSINESS, industry leaders con- European hall concept or in an ultra-mod- they are improving nutrition...not tinue to discuss innovations that shaped ern restaurant on the Upper West Side. implementing ideology the produce industry. 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.

NOVEMBER 2010 • PRODUCE BUSINESS 3 PRODUCE QUIZ

THIS MONTH’S WINNER Jeff Cady NOV. 2010 • VOL. 26 • NO. 11 • $9.90 Produce Buyer/Merchandiser, Tops Friendly Markets P.O. Box 810425 • Boca Raton • FL 33481-0425 Phone: 561-994-1118 • Fax: 561-994-1610 Buffalo, NY [email protected]

PRESIDENT &EDITOR-IN-CHIEF Jeff Cady has been with in, and Tops is a wonderful place to work,” James E. Prevor Tops, a 132-chain Buffalo, he says. “With produce, everything changes [email protected] NY-based retailer, since — the seasons, the unique products, all of it. PUBLISHER/EDITORIAL DIRECTOR 1990. While that may seem Every day brings something new. Plus, I work Ken Whitacre like a long time, the neighborhood with excellent people, both at the store level [email protected] gem has been around for more than 40 years. and within the community.” SPECIAL PROJECTS EDITOR Mira Slott During his tenure, he has been promoted a While Jeff hasn’t been reading PRODUCE [email protected] number of times. “I was hired as a produce BUSINESS for too long, he loves the maga- manager, moved to a supervisor and then zine. “I learn a lot of new things from read- ASSISTANT EDITOR Amy Shannon went corporate. I’ve been in my current posi- ing it,” he says. “Specifically, I find the [email protected] tion for a couple of years.” fresh-cut fruit and packaged salads articles ASSISTANT EDITOR There’s no doubt about it; Jeff loves what very helpful. I definitely want to keep read- Jennifer Leslie Kramer he does. “Produce is a great business to be ing it.” [email protected]

CIRCULATION MANAGER Kelly Roskin How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are simple: Read [email protected] through the articles and advertisements in this issue to find the answers. Fill in the blanks corresponding to the questions below, and either cut along the dotted line or photocopy the page, and send your answers along with a EXECUTIVE ASSISTANT business card or company letterhead to the address listed on the coupon. The winner will be chosen by drawing from Fran Gruskin the responses received before the publication of our January issue of PRODUCE BUSINESS. The winner must agree to sub- [email protected] mit a color photo to be published in that issue. EUROPEAN BUREAU CHIEF Robert Zwartkruis [email protected]

WIN A TASSIMO SINGLE-SERVE COFFEE BREWER! PRODUCTION DIRECTOR This one-touch, fully automatic single-serve coffee brewer elimi- Diana Levine nates the mess and frustration of making one cup of coffee, cappuc- [email protected] cino or even hot chocolate. An LED user interface, height-adjustable PRODUCTION LEADER cup stand and water-level indicator make it easier than ever before to Jackie Tucker brew the perfect hot beverage. PRODUCTION DEPARTMENT JOANNA ARMSTRONG SUNSHINE GORMAN FREDDY PULIDO QUESTIONS FOR THE NOVEMBER ISSUE DIRECTOR OF ONLINE COMMUNICATIONS JASON KAHAN 1) What sweet treat is Dole promoting in conjunction with its Bananas After Dark campaign? ____ TRADE SHOW COORDINATOR ______Jackie LoMonte [email protected]

2) What is the address for Direct Source Marketing? ______CONTRIBUTING EDITORS Meredith Auerbach, Carol Bareuther, ______Theresa Braine, Julie Cook Ramirez, Paula Hendrickson, Bob Johnson, K.O. Morgan, Jodean Robbins, Mira Slott 3) Name two sales associates at The Cranberry Network. ______Barbara Robison, Jon VanZile

______ADVERTISING Eric Nieman, Associate Publisher 4) Washington Fruit & Produce Co. uses what national monument in its [email protected] Sandy Lee [email protected] Bill Martin 5) How many years as General Produce been in [email protected] Colleen Morelli 6) Niagara Fresh Fruit Co. is a division of what company? [email protected] ______Ellen Rosenthal [email protected] FLORAL DEPARTMENT MARKETING This issue was: ❏ Personally addressed to me ❏ Addressed to someone else E. Shaunn Alderman [email protected] Name ______Position ______Send insertion orders, payments, press releases, photos, letters to the editor, etc., to Company ______PRODUCE BUSINESS, P.O. Box 810425 Boca Raton, FL 33481-0425 Address ______PH: 561.994.1118 FAX: 561.994.1610 PRODUCE BUSINESS is published by Phoenix Media Network, City ______Inc. James E. Prevor, Chairman of the Board P.O. Box 810425, Boca Raton, FL 33481-0425. State ______Zip ______Entire contents © Copyright 2010 Phoenix Media Network, Inc. All rights reserved. Phone ______Fax ______Printed in the U.S.A. Publication Agreement No. 40047928 Photocopies of this form are acceptable. Please send answers to: NOVEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

4 PRODUCE BUSINESS • NOVEMBER 2010

TON G G RA N P I E H V S I A N W E Small Farm Exemption in Senate Undermines Public Health

By Robert Guenther Senior Vice President Public Policy United Fresh Produce Association

henCongressreturnsfora peryearconsidered“small?” kitchens that produce only low-risk food items WLameDucksessioninNovem- According to the Small Business Adminis- (such as baked goods and jams) from state ber and December, they may tration, in 2004, 83 percent of non-farm busi- food safety and licensing requirements. consider legislation that would reform the food nesses (25 million of 30.7 million business safety laws in this country. The U.S. House of filing taxes) reported gross receipts of $500,000 Is the Tester Amendment bad for growers Representatives has already passed its version or less to the Internal Revenue Service. There- and processors who would be exempt? of the bill and is awaiting action by the Senate fore, under the Tester Amendment, a majority A question remains as to whether insurers on S. 510, the FDA Food Safety Modernization of food-processing businesses would not have will allow retail establishments like restaurants Act. There are a number of amendments that tocomplywiththepreventivefoodsafety andsupermarketstobuyfromsmallfarm- may be considered by the Senate to S. 510, but measures mandated by S. 510. ers/processors that are exempt from FDA regu- none more important than an amendment by According to the USDA Census of Agricul- lations. Such sales pose a significant business Senator Tester of Montana that would exempt ture, 94 percent of farms (2 million of 2.5 mil- risk. Moreover, as was the case with the spinach small farms and food processors from manda- lion farms) had income of less than $500,000 outbreak, the peanut outbreak and many oth- tory food safety requirements based on the size in 2007; they accounted for one-fourth of all ers, consumers often steer clear of the tainted of their operations, to whom they sell food farm income. USDA considers a farm small if product entirely, no matter who the producer products and their geographic marketing area. it has income of $250,000 or less. Small farms, is. Thus, when a foodborne disease outbreak or Herein, an explanation of some of the aspects asdefinedbyUSDA,wouldstillaccountfor90 major recall occurs, this often severely harms of this amendment and why it is not good pub- percent of all farms, but only 15 percent of consumer confidence in that food, and hurts lic policy. total farm sales. business for all producers of the product, not just sales by the producer of the tainted food. Will Food Products SoldAtA Location That Will growers exempt under the Tester Is 400-Miles Or Less FromWhere ItWas Grown Amendment be subject to state and local food Are foods grown or processed by small, (AFarm)OrProcessed(AFacility)BeConsid- safety standards? local operations“safer”than those produced ered“Local”Under The Tester Amendment? The premise underlying the Tester Amend- by larger entities? The Tester Amendment is intended to elim- ment is that growers exempt from federal law A number of food safety outbreaks over the inate needless federal regulation of small“local” will be covered by comparable state and local past several years have been related to small producers and processors, but a distance of safety standards. However, there are no farms and operation including tomatoes, milk, “400 miles”cannot be considered“local”under mandatory, enforceable produce safety stan- organic leafy greens and peas. In addition, a any reasonable definition. If the Tester Amend- dards in any state except Florida (and the stan- 2006 study by the University of Minnesota ment is adopted in its current form, then Wash- dard applies only to tomatoes). In fact, a 2010 compared conventional, certified organic and ingtonians would be able to buy unregulated report by the National Academy of Sciences non-certified organic produce, finding no dif- food grown or processed as far south as South highlighted major food borne disease surveil- ference in the likelihood of contamination. It Carolina; as far west as Tennessee, Kentucky lance inconsistencies across states and the lack concluded that produce type, rather than farm and Ohio; and as far north as Toronto, New of resources needed to protect consumers. type, is more likely to influence the prevalence York, Vermont and New Hampshire. of E. coli contamination. The entire premise underlying the Tester Does the Tester Amendment consider the The Tester Amendment is a complete rever- Amendment is that when buying “local,” the risk of the food item when determining if a sal of the underpinnings of S. 510, which has consumer has a close, personal relationship grower or processor is exempt from federal been driven by risk- and science-based stan- with the grower or processor and can contact food safety requirements? dards that would apply to the food sectors. In him/her directly if there is a food-safety prob- Tester’s exemptions are based only on the addition, there are a number of important pro- lem. It is hard to understand how that will be size of the grower or processor and its geo- visions already included in the bill that will true for food sold by a grocery store or a graphic proximity to a qualified end-user. It help alleviate pressure on small farms and food restaurant that is 400 miles away and from the does not take into consideration the health risk processors that are important to consider and farm or facility that produced it. posed by the food item that is grown or are crucial to ensuring that this legislation is processed. By contrast, many state “cottage “scalable”in its application of federal standards Are businesses with incomes of $500,000 food” laws and regulations exempt home throughout the food chain. pb

6 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 37 THE FRUITS OF THOUGHT

RETURN TO NEW YORK

By James Prevor President & Editor-in-Chief

learned a great deal about the produce The visit to New York would normally be unremarkable; it is, industry listening to my grandfather. Of after all, a trek I have made many times before. Yet I travel now to Icourse, I also learned a great deal from my launch the inaugural edition of The New York Produce Show and father, but he was often working and busy. Conference. Bringing it to fruition is, by far, the hardest thing I’ve My grandfather, retired, could discourse: He ever done. Yet each step has been an inspiration. had been a networker, an association person We had the good sense to join hands at the beginning of the venture and an industry leader — a Mason and head with the Eastern Produce Council. What a fortuitous choice that was. of the Fruit Auction Buyers’ Association for We owe a debt of gratitude to John McAleavey, executive director of many years. the EPC; Dean Holmquist, director of produce and floral for Foodtown My grandfather’s produce career was cut short by cancer. He had Supermarkets and president of the EPC; and Paul Kneeland, vice pres- cancer of the larynx. The cancer itself didn’t kill him, but he had to have ident of produce and floral for Kings Super Markets and chairman of a laryngectomy to remove his larynx, and since his voice was the pri- the EPC conference committee. They were always my friends, but they mary tool with which he made a living, he could no longer do business. turned out to be inspirational in their daily dedication to serving the When my grandfather fell ill, he moved to Tamarac, FL. On one trip trade and in doing the right thing. to visit him, I accompanied him to a homeowners’ association meeting Our PRODUCE BUSINESS team rose to the occasion in an amazing way. where some issue was hotly debated. We sat silently, listened to the oth- When Ken Whitacre and I hired Ellen Rosenthal, she was working in a shoe ers and, in the end, my grandfather store. It is elevating to see people cast his vote. We walked home in become all they can be. Watching the dark, without a star in the sky Ellenfightforthisevent—fightto that night. All was quiet except for In the biggest buying region in make it extraordinary — has been a the occasional cricket, and my the country, in the capital of the world, measure of her own extraordinary grandfather, for whom speaking growth and accomplishment. was laborious, drew breath as he there had long been a void and It is never a good idea to count prepared to say something he now it will be filled. one’schickensbeforetheyare thought worth the effort. hatched, and as I write this, no We stopped in the darkness eventhasyetbeenheld.Butwe and he said,“You know, years ago standconvincedthatwehavecre- Iwouldhavegiventhespeeches.Iwouldhaveledthatmeeting.But ated something World Class. It is not only the sold-out trade show, nor they took my voice. Now I can’t do it.” I remember observing his the educational micro-sessions, nor the chef cooking demo, nor the many demeanor and thinking he wasn’t really sad. He was a practical man tours of the region. Neither the keynote retail panel, nor the networking and had accepted his fate, but he spoke because he wanted me to know opening reception explains it. It is a sense that there is a synergy here. It the values he approved of did not include sitting silently while the issues is a notion that in the biggest buying region in the country, in the capital of the day were decided. of the world, there had long been a void and now it will be filled. We continued to walk and I remember saying, “Grandpa, don’t Sometimes when I visited my grandfather, we would sit by the pool worry, one day I’ll give the speeches for you.”I’m not 100 percent sure and he would talk with the other retirees. Oddly enough, they didn’t what I meant, but the thought seemed to please him and we walked on. speak too much about their own lives; they would talk mostly about It has been over half a century since my grandfather chaired the their children, and as my grandfather reported on the exploits of his Fruit Auction Buyers’Association. Each year, the association held a gala sons, recounting their success in business and in life, he would beam. in Manhattan, bringing in entertainment and a big orchestra. In its day, My grandfather passed away many years ago, not long after we it was a grand produce event. launched PRODUCE BUSINESS. I think he would be amazed at what we I write this as I prepare to leave for New York City, to return to have created. If I am quiet, I can hear his voice, now restored to its the place my great-grandfather, Jacob Prevor, arrived at from Rus- pre-cancerous state, as he speaks proudly to his friends and points sia so many years ago and where he opened a produce wholesaling down to the different events going on in mid-town Manhattan at The business in Brooklyn’s now defunct Wallabout Market. I return to New York Produce Show and Conference. New York, where my grandfather, Harry Prevor, was a wholesaler When I get up on stage at the keynote breakfast and prepare to mod- and auction buyer in the old Washington Street Market. I return to erate our all-star panel, I’m going to tip my microphone to my grand- New York where my father, Michael Prevor, was an original tenant father and tell him that, as promised on a starless night long ago, this in the Hunts Point Produce Market. one is for you Grandpa. pb

8 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 2 PRODUCE WATCH TRANSITIONS ACME MARKETS INC. LOBUE CITRUS MALVERN, PA LINDSAY, CA Jay Schneider was promoted to business devel- Rick Osterhues was hired as vice president of opment manager. Schneider began his 27-year sales and marketing, a newly created position. career with Acme pushing carts at the store level His duties will include providing leadership on and later managing the produce department. He key sales and marketing initiatives. He brings held various other positions, such as imported nearly 20 years of experience in business- field inspector and produce operations special- process improvement in the produce industry. He ist. Most recently, he spent 10 years as produce previously worked for Chiquita Brands Interna- category manager. His experience at Acme tional, The David Oppenheimer Group and Grow- includes 23 years working with produce. ers Express.

COOSEMANS WORLDWIDE INC. NSF INTERNATIONAL MIAMI, FL ANN ARBOR, MI Chick Goodman has joined the Coosemans Donna Garren was appointed to president and Worldwide team as vice president of sales and general manager of NSF Davis Fresh. She will marketing. He brings more than 20 years of work closely with the NSF Davis Fresh team to national sales and marketing experience in the verify safer, consistent produce practices utiliz- produce industry. He previously worked at ing NSF Davis Fresh’s technical expertise. She HerbThyme Farms, Quail Mountain Herbs, brings more than 14 years of experience work- Galaxy Nutritional Foods and Harmony Foods. ing in the food industry, most recently serving as vice president of Food Safety Programs for the Consumer Goods Forum.

NOKOTA PACKERS INC. NATURIPE FARMS BUXTON, ND NAPLES, FL Mike Rerick has been hired as vice president Brian Jenny was appointed to the newly cre- of sales and marketing. He will be working ated position of director of East Coast busi- with Steve Tweten in the sales department. He ness development. He will be responsible for brings 12 years of sales experience that he leading the East Coast sales team, servicing gained from companies such as Xerox and the existing client base and developing new Coca-Cola, and most recently, the fresh potato business opportunities in the retail, foodser- industry. vice and wholesale channels. He previously worked for Monterey Mushrooms since 2002.

CRANBERRY INSTITUTE STROCK & CO INC. EAST WAREHAM, MA CHELSEA, MA Terry Humfeld was selected as the new execu- Sheldon Borodkin was hired as a produce tive director. He will be joining the institute buyer/salesman. He will handle new com- this month, and stepping up as its new execu- modities for the company and pursue oppor- tive director on January 1, 2011. He will replace tunities to grow sales, particularly in the Jere Downing, who will retire at the end of vegetable category. He has worked in the 2010. Humfeld brings more than 26 years of produce industry for 26 years, most recently professional experience with association man- as director of purchasing for a large foodser- agement for horticulture and produce trade vice distributor. organizations.

NEW PRODUCTS CONVENIENT SALAD CONSUMER 5-LB. POTATO BAGS DRESSING PRODUCTS Campbell Farms, formerly Tri-Campbell Farms Rising Sun Farms, Phoenix, OR, now offers its of Grafton, ND, has introduced a new con- convenient Salad Energizer line in a larger 5.5- sumer 5-lb. bag for potatoes that is a com- oz. size with a re-sealable lid. The company bination of poly and netting that features a has also expanded its Oil Free Dressing line to convenience handle. The netting allows include a new natural fig flavor. The full line of great visibility for the product, while the Rising Sun Farms Oil Free Salad Dressings & poly emphasizes "red-baking potatoes." The Marinades are cholesterol- and fat-free, low in backside includes potato-based recipes. carbohydrates, calories and sodium. Reader Service Number 301 Reader Service Number 300

FRESH-CUT GREEN AND RED APPLE PACKS PURE COCONUT WATER Freshway Foods, Sidney, OH, has begun pro- Bolthouse Farms, Bakersfield, CA, intro- duction of fresh-cut green and red apple packs duces its newest addition to its exotic under the Mott’s label. The new line includes Bom Dia product line: Coconut Splash retail and club store packs as well as foodser- Tropical Mango, pure coconut water vice offerings. This past May, Freshway Foods from the tropics. Packed with elec- finalized the partnership to become the Mid- trolytes, including more potassium than west processor for Mott’s fresh-cut apple line a whole banana in each 15.2-oz. bottle, and started production in June. Coconut Splash is naturally low in fat Reader Service Number 302 and contains only 60 calories per bottle. Reader Service Number 303

Produce Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

10 PRODUCE BUSINESS • NOVEMBER 2010 PRODUCE WATCH NEW PRODUCTS HISPANIC-FOCUSED FRUIT LINE SALAD KITS LAUNCHED JBJ Veg-Land, Fullerton, CA, now offers a Fresh Express, Cincinnati, OH, a fully owned complete Hispanic line of 9-oz. swirl fruit subsidiary of Chiquita Brands International Inc., cups with a separate Chile packet. The has launched its new convenience-focused, Hispanic line consists of fresh-sliced value-added salad kits program. As consumers coconut, cucumber wheels, chunk increasingly demand new and flavorful salad papaya, sliced sweet mango, pineapple options, Fresh Express has launched a unique and jicama. It also offers a complete line program to meet their needs for complete and of Grill Mates for the barbeque. delicious salad meals. Reader Service Number 304 Reader Service Number 305

ANNOUNCEMENTS CAIA TO HELP HOST PFK KICKS OFF ANNUAL FALL CAMPAIGN TOSTITOS FIESTA BOWL Produce for Kids, Orlando, FL, is partnering The Chilean Avocado Importers Association with four retailers, which represent more than (CAIA), Aptos, CA, has again partnered with the 1,500 grocery stores in 20 states in the organi- Tostitos Fiesta Bowl, which will be played on zation’s annual Eat Smart for a Great Start fall January 1, 2011, in Glendale, AZ. This sponsor- campaign to benefit PBS KIDS. In September ship opportunity gives CAIA on-premise visibility and October, participating fruit and vegetable among hundreds of thousands of college foot- growers nationwide made donations to PBS ball fans. KIDS based on sales of fresh produce items at Reader Service Number 306 participating retail stores. Reader Service Number 307

TURBANA CORP. DEL MONTE SUPPORTS TEACHERS CELEBRATES 40TH BIRTHDAY Del Monte Fresh Produce N. America Inc., Turbana Corp., Coral Gables, FL, is celebrat- Coral Gables, FL, is launching a program ing 40 years in business since opening its to help support kindergarten through doors in 1970. A premier importer of pre- 12th-grade public school teachers across mium bananas, exotic bananas and plan- the United States, Canada and Central tains in North America, Turbana most America, with cash to purchase school recently rolled out its new corporate and supplies and fresh fruit. The efforts are part of Teacher Monday: Cash brand identities, and in 2010 launched a division of consumer for Classrooms, an integrated marketing campaign driven by an online packaged goods with its Turbana brand of plantain chips. contest in which consumers vote for their favorite teacher. Reader Service Number 308 Reader Service Number 309

FARMER’S BEST PARTNERS AMHPAC HOSTS TECHNICAL, ON TOMATO STUDY BUSINESS-ORIENTED CONGRESS Farmer’s Best, Nogales, AZ, partnered with an AMHPAC, the Mexican Greenhouse East Coast research firm to conduct a study of Growers Association, in Culiacán, principal grocery consumers in the United Sinaloa, Mexico, attracted more than States. The study addressed the frequency of 300 attendants from 20 Mexican tomato purchase, type preferences, key attrib- states and five countries to its third utes, usage and other selection criteria and annual Technical and Business Oriented Congress held in Guadalajara, served to support some retailers’ current prac- Jalisco, Mexico. AMHPAC’s current chairman of the board, Cesar Campaña, tices and beliefs, adding new angles to consider. inaugurated the country’s leading protected horticulture association. Reader Service Number 310 Reader Service Number 311

OCEAN MIST FARMS AND SONY MARIANI INTRODUCES NEW PARTNER ON DVD OFFER LINE OF SEASONED ALMONDS Ocean Mist Farms, Castroville, CA, has Mariani Nut Co., Winters, CA, has intro- partnered with Sony this fall to promote duced a new line of seasoned almonds to the release of the movie Eat Pray Love on join the company’s natural whole, sliced DVD. The retail offer includes an Instant and slivered nuts in the fresh produce Redeemable Coupon for $3-off the pur- aisles. Honey Roasted, Wasabi & Soy and chase of Sony’s Eat Pray Love movie on Roasted & Salt seasoned almonds are now DVD with the purchase of an Ocean Mist available in convenient, resealable 6-oz. Farms artichoke. packages. Reader Service Number 312 Reader Service Number 313

CHIQUITA UNVEILS WINNING MANN PACKING LAUNCHES CONSUMER-CREATED STICKER DESIGNS MULTIPLE CANADIAN PROMOTIONS Chiquita Brands International Inc., Cincinnati, OH, Mann Packing Co., Salinas, CA, is supporting unveiled the 18 designs selected to adorn Chiq- its Canadian sales program this fall with multi- uita bananas in U.S. grocery stores during the ple promotions, including 250,000 promotional month of November. In June, Chiquita invited con- booklets offering more than $3.50 in savings sumers to personalize their Chiquita experience as that were applied to Mann’s fresh-cut veg- part of the Chiquita Banana Sticker Design Con- etable products shipped to Canadian markets. test. More than 100,000 votes determined the The booklets will feature a variety of offers winning 18 designs from a field 50 finalists. and recipes from many Canadian partners. Reader Service Number 314 Reader Service Number 315

Produce Watch is a regular feature of Produce Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, Produce Business, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

NOVEMBER 2010 • PRODUCE BUSINESS 11 LETTERS TO THE EDITOR

25 Years Of Tradition 40 Under Forty...And Proud Just wanted to say how much I enjoyed read- I wanted to thank you first and foremost for ing Jim Prevor’s Special Note, comparing your 25 includingmeinthisyear’s40UnderForty.Not years with PRODUCE BUSINESS with the scene in Fid- only am I honored to be among such a distin- dler on the Roof. That film is probably my guished group of professionals, but also you and favorite and the scene a poignant one in the your staff did an exceptional job of really making story. each of us feel special. All the best, and wishing you happiness and success in the next 25. Tradition! Armand Lobato Foodservice Promotion Director, West Idaho Potato Commission Eagle, ID

Grandpa’s Watching FIRST PRE-CUT PRODUCT — We just received our 25th Anniversary edi- PEELED GARLIC tion of your PRODUCE BUSINESS magazine in the Wow — that is some milestone that [Jim Prevor office, and while Chris Fleming had warned me and Ken Whitacre] are celebrating their 25-year that you mentioned Bob Sr.’s passing in an arti- anniversary of PRODUCE BUSINESS. Congratulations! cle, I still completely welled up as I read the Arguably, the innovation of fresh-cut produce last page. Grandpa’s presence is still here, and has done more to revolutionize the produce I still look for his guidance on a daily basis. I industry than any other single factor in the continue to deeply miss him. I have no doubt Throughout the conference, industry’s last 25 years. Looking at the top-sell- in my mind that he is looking down smiling, eachtimeIsawsomeonefromPRODUCE BUSINESS, ing products in the produce department, fresh- and with that booming voice trying to tell [Jim they always introduced me to their group as one cut lettuce, peeled carrots and fresh-cut fruit are Prevor] how proud [his] grandfather really is. of the 40 Under Forty. At each point of the con- three fresh-cut items helping drive sales in the Not only of where you have taken this maga- ference I was honored to be a member of the department. In addition, foodservice sales are zine, but all the contributions you have made 40 Under Forty. You will see me proudly wearing primarily driven by fresh-cut produce. in our industry as well. my pin at next year’s Fresh Summit. Before packaged salads, before baby carrots Congratulations on a wonderful 25 years! and before sliced apples, there was peeled gar- While Grandpa isn’t here, you always have the Kristen Reid lic. I believe that peeled garlic was the first true support of the next 12 family members that are MIXTEC Group pre-cut produce item sold nationally by a still working here in Chicago. Senior Recruiter grower/packer/shipper in the United States. Don Best of luck! Pasadena, CA Christopher [partner in Christopher Ranch LLC] should be recognized for being the first ones to Lisa J. Strube bring peeled garlic to market, and therefore the Director of Finance and Administration first pre-cut product in the industry. Strube Celery and Vegetable Co. It was just about 25 years ago that Don Chicago, IL Christopher thought about introducing peeled garlic to the United States. It took a few years before it started to become widely accepted, and Forever Friends now it comprises about half of the fresh garlic I wanted to take a minute to let you know sold in the United States, and virtually 100 per- how much I enjoyed your 25th anniversary edi- cent of the foodservice business. It is sold in tion of the PRODUCE BUSINESS and to once again both retail and foodservice now. thank you for remembering and mentioning my I think the industry owes Don Christopher the Grandfather in the Blast From The Past article. recognition that he introduced the first national You have done so much for this family with brand of pre-cut produce. As a fellow marketer of your words and friendship and I am forever garlic, I truly appreciate what he has done to grateful for that. Letters to the Editor bring innovations like peeled garlic to market. Thank you again. should be mailed to: Produce Business, Jim Provost Chris Fleming P.O. Box 810425, Managing Member Business Development Boca Raton, FL 33481 ILoveProduce Strube Celery and Vegetable Co. or email: [email protected] West Grove, PA Chicago, IL

12 PRODUCE BUSINESS • NOVEMBER 2010 THE RISING STAR= RECEPTION

On Saturday night, October 16, at the PMA Fresh Summit in Orlando, FL, PRODUCE BUSINESS, in conjunction with sponsors, the MIXTEC Group and Ocean Mist Farms, hosted the sixth annual Rising Star Reception to celebrate this year’s 40-Under-Forty* class.

In addition to the members of the Class of 2010, attendees included members of the classes of 2005-2009, as well as many movers and shakers of the produce industry. The students and faculty from U.S. and international colleges, who were participants of the Pack Family/PMA Career Pathways Fund, were also honored guests.

*40-Under-Forty, an annual feature of PRODUCE BUSINESS, honors the produce leaders of tomorrow, all of whom have been chosen by industry mentors for their industry and community accomplishments. Please see this year’s winners by visiting www.producebusiness.com and clicking on our June 2010 issue. You can also nominate candidates for next year’s class by clicking on the 40-under-Forty icon.

Editor-in-Chief, Jim Prevor, at podium, poses with some of this year’s 40-Under-Forty recipients. Photos courtesy of Dean Barnes

Bob Biesterfeld and Doud Prohaski, C.H. Robinson Company Worldwide

Jay Pack, The Pack Group Bryan Silbermann, PMA

Bob Gray, The California Bryan Roberts, Gualberto Rodriguez, Ronda Reed and Michelle Gonsalves, Dole Fresh Vegetables Katy Blowers, Church Brothers Produce Agricultural Leadership Foundation Save-A-Lot Food Stores Caribbean Produce Exchange Inc.

NOVEMBER 2010 • PRODUCE BUSINESS 13 THE RISING STAR RECEPTION

Felicity Robson, OneHarvest

Alejandro Buvinic, Fernando Balari, Andrea Visconti and Tom Tjerandsen, Chilean Fresh Fruit Association Chris Nelson, Leonard Batti, Kristen Reid and Jerry Butt, MIXTEC Group

Robert Schueller of Melissa’s World Variety and Carol Bareuther of PRODUCE BUSINESS

Ray DiRiggi and Ronda Reed, Dole Fresh Vegetables Dale Huss, Afreen Malik, Jorge Suarez and Kori Tuggle, Ocean Mist Farms

Will Wedge, Nate Sprague, Wendy Ward and Eric Viramontes and Jose Gaxiola, Mexican Greenhouse Growers’ Association; Ines Masallach Armijo and Marco Albarran, Imalinx; Brianna and Brian Mark Jewell, Delhaize America Vertrees, Stemilt.

CarrieAnn Arias of Dole Fresh Vegetables, Stacey Larson of OneMediaGroup, LLC, Greg Corrigan of Tom Infanti and Jesse Eppler, World Class Flowers Jon Holder, Raley’s Raley’s and Brent Scattini, Gold Coast Packing Inc.

14 PRODUCE BUSINESS • NOVEMBER 2010 THE RISING STAR RECEPTION

Douglas Hawkins and Doug Hawkins, Litehouse Inc. Ken Whitacre of PRODUCE BUSINESS and Fernando Agular of Naturipe Farms

Tracie Levin, M. Levin & Co. Inc.

Jimmy Matiasevich and Steve Janedis, Veg-Land (JBJ Distribution)

Nathalie Fontanilla, James Blowers, Bret Sill, Billingsley Produce Sales Wendell and Helen Christoff, Litehouse Inc. Angela Paymard, N2N Global Earthbound Farm West Coast Distributing

DJ Ludlum, Dave Ludlum Produce LLC Katherine Kendrick and Marc Desalvo of St. Joseph’s University; Tim Burleigh of Colorado Dept. of Agriculture Allen Davis, Dole Fresh Vegetables and Jessica Martini of Texas A& M University

Susan and Wendell Hahn of Four Seasons Produce and Andrew Bivens, John Cameron Andrew Schwartz, Anny Chaleunsouk of Sunrise Logistics Inc. Westlake Produce Co. Desert Glory Ltd. Rosemont Farms Corp.

NOVEMBER 2010 • PRODUCE BUSINESS 15 RESEARCH PERSPECTIVE Regaining Consumers’ Hearts And Minds

BY BRYAN SILBERMANN, PRODUCE MARKETING ASSOCIATION, PRESIDENT & CEO

ou’re likely familiar with the phrase “share of stomach.” I’d like you to Y consider a new one: “piece of mind.” Despite positive signs including budget- minded consumers who are now preparing more meals at home, and foodservice and government looking to promote wellness by encouraging healthier eating, overall con- sumption of fruits and vegetables has shown few signs of growth in recent years. I believe strongly that this is in part because we aren’t telling our stories — of the integrity and val- ues that go into producing and distributing our products — as individual companies, and collectively as an industry. In focusing on how we get our products to market, we’ve lost something vitally important: connections with our consumers. Further, we’ve also allowed others to own CHART COURTESY OF PMA our communications space, planting false age cost to get nine daily servings of fruits consumer confidence in our industry and perceptions in consumers’ minds about fresh and vegetables is only $2.18 — and just 88 the safety of our foods. A new PMA-sup- fruits and vegetables. In the process, con- cents for the bargain shopper who purchases ported campaign from the Alliance for Food sumers have been scared away from the very the least expensive items. This value is con- and Farming is responding to Dirty Dozen- foods they should be eating more of. sistent year-round, coast to coast. type myths with facts and science. For more Thegoodnewsisthatitisnottoolateto Together, these studies present a wealth information, tools for communicating with take our communications space back. To do of information to integrate into our stories, consumers, and to contact the alliance to so, we must do a better job of telling our and to tell the real story. These findings support their work today, I encourage you stories, individually and collectively — and give our industry’s producers fact-based to visit www.safefruitsandveggies.com. of better understanding today’s new con- tools to talk to consumers about the great These latest studies are evidence of the sumer, who buys not just what we do, but value produce offers, and how you can high price our industry is paying for having lost why and how we do it. help them affordably shop for and prepare the hearts and minds of consumers over the To help our members do that, Produce meals that include your products. Mean- years, while allowing others to perpetuate Marketing Association (PMA) recently com- while, retailers should communicate with myths that keep consumers away from the missioned two research projects: one to learn shoppers that fresh produce is the new nutritious foods they should be eating most. more about today’s new consumers and their value menu, in addition to being healthful The truths exposed by these research fresh produce behaviors and perceptions, and and delicious. Few items in the supermar- projects also remind us of the importance another to evaluate claims that fresh produce ket are available for the low cost of about of authenticity and transparency in telling costs more than other food groups. $0.25 per serving — and certainly, none our stories. Consumers must know about Consumers who are not increasing their are more healthful. our tireless efforts to deliver fresh produce fresh produce consumption most often cite (PMA members can access these studies with the utmost attention to safety, taste cost as the primary barrier, according to new through the PMA.com online Research and affordability — every bite, every time. research conducted for us by The Hartman Center, which contains these and other By telling our stories and achieving “piece Group. And we’ve all seen or heard the research reports to help you interact with of mind” in consumers’ collective con- claims in the media and from other influen- consumers to grow your business.) sciousness, they can have “peace of mind” tial sources, most recently from First Lady We also now have a science-based tool to buy and enjoy more of our products — Michelle Obama. So PMA commissioned The to help bust another myth that is damaging for their better health, and for ours. Perishables Group to study national fresh produce prices. They found that, in fact, For more than 60 years, the Produce Marketing Association has been the leading trade association fresh produce is a bargain: the national aver- representing nearly 3,000 companies from every segment of the global produce and floral supply chain.

16 PRODUCE BUSINESS • NOVEMBER 2010 COMMENTS & ANALYSIS Why The Disconnect In Price Perception Versus Reality?

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

hen consumers say things that thus, are not expected to be economical. things up and running them as stories that aren’t true — that produce is too This all points to an industry need to the damage is done. So a focus on educat- Wexpensive — good researchers focus on smaller items. That big head of ing and informing those who make the don’t dismiss those claims; they pause to lettuce may be very inexpensive, but one decisions on what stories to run and those wonder why those surveyed said that. And suspects that consumers who only eat half who write and report those stories is an to a certain extent, that is what PMA did. of it and throw out the rest feel they are important undertaking. Since we know, thanks to the PMA being wasteful and, therefore, think the PMA has made a worthy contribution by research, that produce is quite affordable, item is expensive. funding important research. We hope the why would consumers say otherwise? Another possibility is that our very pro- industry will read it with an open mind. Coulditbethatthisisacover-upofsorts? gressive industry, with lots of innovative There is no doubt that we have good stories Consumers know they should eat more fresh-cutitems,haschangedtheverydef- to tell and that we have not always told produce, but they don’t, so they want to inition of fresh produce. Perhaps many them effectively. If we are honest with our- blame some other factor. Affordability is a consumers just won’t consider buying a selves, though, we will also acknowledge good choice because nobody will think ill of head of cabbage; maybe they will buy someone who doesn’t buy an item because pre-shredded coleslaw or, maybe, they they can’t afford it. want it already prepared and so they buy We would suggest, though, that con- it from the deli. Maybe even on com- The industry is likely sumers actually perceive fresh produce to modities, consumer perception has to benefit more from be expensive because they throw out a changed. Mann Packing used to focus on great deal of it and that image of waste commodity broccoli; now it sells a more understanding the stays with them. Some of this may be due upscale and trademarked Broccolini. reality that to factors the industry can potentially con- Then, of course, the consumers might trol. If consumers throw out fresh produce believe that only organic or only local is consumers perceive because they bite into an apple and find it acceptable. they are living in mealy; bite into a peach and find it taste- The point is that the industry is likely to less; or find a melon lacking in sweetness, benefit more from understanding the real- than simply trying to concerted effort along the supply chain ity that consumers perceive they are living persuade consumers can help change this experience. However, in than simply trying to persuade consumers this change will not come easily and may that they are wrong. that they are wrong. come only by increasing waste in the sup- When the industry steps up to tell its ply chain, and perhaps prices, as items will story, one question worth considering is get rejected for not meeting epicurean this: To whom should we be talking? Bravo standards. to PMA for supporting the Alliance for that we could make our story stronger. However, one suspects that an awful lot Food and Farming in efforts to respond to Too often, we sell products we know do of produce goes to waste simply because Dirty Dozen-type attacks. Yet this effort is not taste very good. Too often, we accept life is somewhat unpredictable. As a result, probably not best thought of as an effort the display of that product under less-than- the produce purchased can go bad when focused on consumers. It is too small an optimal conditions so we can boost sales in dinner plans change because the kids’ effort to reach many consumers, and the the very short term. Both retailers and ship- game goes into overtime or a parent has to message is kind of complicated. The Dirty pers sell product before it is ripe to grab a work late at the office. Maybe Grandma Dozen message, with its simple recom- fleeting “first” claim with consumers or to and Grandpa stop by and offer to take mendation to purchase organic on certain catch a fleeting high market. All of these everyone to dinner or a neighbor suggests items to minimize pesticides, is intuitive, practices and more are part of our industry a barbeque. This is a big problem for pro- even if meaningless. and all help explain why consumption does duce. Many people buy meat and immedi- What might be possible, though, is to not move. ately put most of it in the freezer. Bread “influence the influencers” — and this is Let us focus on telling our story and also from the bakery can go bad, but it is a important work. After all, when a self-pro- focus on conducting ourselves in such a much smaller department. Deli and, espe- claimed public interest group issues a press way that if the whole story was on the front cially, prepared foods aren’t commodities release, this does little damage. It is typically page of The New York Times, we would all and ingredients in the way produce is and when media outlets start picking these be proud to be associated with the tale.

NOVEMBER 2010 • PRODUCE BUSINESS 17 School Districts Need To Be Certain They Are Improving Nutrition...Not Implementing Ideology FROM JIM PREVOR’S PERISHABLE PUNDIT 10.15.2010

n the New York City school district Night” in September, 2009, and got 12 pose of teaching young people about farm- responsible for the education of Mrs. parents to form the Sea Cliff School Nutri- ers and food production is only marginally IPundit, a local news affiliate is focusing tion Committee. Rieger was asked to be related to the food in the cafeteria — after its attention on the school cafeteria. The the chair. all, a farmer grows grapes, whether they story, Sea Cliff N.Y. Parents Fight For Better It sounds very exciting. Who could come from New York, California or Chile. School Nutrition, puts forth: possibly be opposed? Yet very quickly All over the country, efforts such as this The battle on the school lunch front is the effort seems to lapse from nutrition are gaining momentum. In many cases, gaining momentum as unsatisfied parents to ideology: they pander to a kind of anti-scientific sen- and administrators band together to get A diverse group of parents including a timent and achieve things that are mean- processed foods and unhealthy snacks out pediatrician, a nutritionist and a yoga ingless or even teach the children errantly. of their school lunchrooms for good. instructor makes up the committee. It happens so frequently, with so much the A particularly passionate committee of “We long for a cafeteria that serves sim- same effect, that one is reminded of Marx’s parents in Sea Cliff, NY, on Long Island is ple seasonal food, in an environment that critique of Hegel. Hegel taught that history fighting to revamp their district’s lunch fosters community. We want our children repeats itself; Marx said Hegel forgot to add menu, and they are getting results. to understand the connection between the the first time as tragedy, the second time as “There was always a nutrition commit- foods they eat and the farmers that pro- farce. Here is what these efforts seem to tee, but it was weak,” says Rieger [a con- duce the food,” says Luisa Giugliano, a come to all too often: cerned parent who was interviewed for the yoga instructor, parent and committee One of the committee’s missions is to story]. Only one or two parents would member. involve the children and to teach them come to the monthly meeting and offer up The yearning for “simple seasonal food” about wholesome, nutritious food. They ideas on how to improve the school lunch, might be strongly held and the desire to held a healthy bake sale with treats con- but they would be shot down and dis- “foster community” may be sincere — but taining no refined sugar and organic ingre- missed as too expensive, says Rieger. both have to do with a vision of society that dients. It sold out. The $140 raised will go The Sea Cliff Parent Community Asso- has precious little to do with getting suste- toward improving nutrition education in ciation (their name for the PTA) decided to nance into the students and getting them the school. put out a sign-up sheet at “Back to School offtomathclass.Eventheeducationalpur- Of course, the evidence that organic ingredients promote human health is scarce indeed, and the evidence that sweetening one’s cake with honey or agave nectar or other “unrefined” sugars will make people live longer or be health- ier is virtually non-existent. There is a lot to educate about here. Jan DeLyser, vice president of marketing for the California Avocado Commission, teaches a class in marketing communications at Cal Poly Pomona, and she invited the Pundit to guest lecture on the topic, “How to Arrive at an Informed Opinion.” The lecture was well-received, and it would be very helpful for children to be taught a mode of think- ing so when people start pushing ideolo- gies, such as “seasonal eating,” “non -refined sugars,” etc., the children know how to ask pertinent questions. That is actually a more important thing for a school to teach than propagandizing children with the currently trendy weltan- schauung of the intelligentsia.

18 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 39 Twenty-Five INNOVATIONS THAT SHAPED THE INDUSTRY

Following the cover story from last month’s 25th Anniversary Edition of PRODUCE BUSINESS, industry leaders continue to discuss innovations that shaped the produce industry. BY JODEAN ROBBINS

sPRODUCE BUSINESS continues to past 25 years of produce trade. “This has that it would be properly recorded at the explore the innovations affecting been both a good and bad area of influ- checkout area. It also allowed both the Achange in our industry over the ence,” states Kevin Moffitt, president and retailers and the shippers to now manage past 25 years, we highlight five more CEO of the Milwaukie, OR-based Pear the various categories.” from the original list of 25 innovations Bureau Northwest (PBN). “It has helped the John Anderson, chairman, president & that were included in our October issue. retailer track inventory and even reduce CEO of The Oppenheimer Group, based in The first five innovations discussed in the their labor pool at the buying level, but has Coquitlam, British Columbia, Canada, October issue were: 1. Communication hurt some growers by adding costs. For adds, “Some of these new electronic cate- Technology, 2. Consolidation, 3. Value- example, costs of the PLU stickers are gory management and GPS technologies Added, 4. Club Stores and 5. Super- passed on to the grower. It has also reduced will allow the retailers to be better edu- centers and Global Trade. Of these next inventories at retail and caused some retail- cated on, for instance, what their shrink is five innovations, several were not so ers to curtail carried items putting pressure on the shelf and which products are mak- much innovations in themselves, but on the important but less purchased cate- ing the highest return and that will have rather issues that caused the industry to gory items or varieties. On the positive side, them changing quite rapidly from one respond with innovation. the UPC helps eliminate errors at checkout product to another. This affects the life The areas of food safety and govern- and provides more accurate sales data. In cycle of bringing new products.” ment regulation, for example, have pushed addition, it has the potential to provide our industry to become pro-active innova- much more information to the retailer and 7: FOOD SAFETY tors. “The past decade has witnessed how the consumer about the product.” AND TRACEABILITY a vacuum in appropriate regulatory over- “The move to category management def- Perhaps no issue has so affected the sight of food safety — just as in banking, initely changed the buyer/seller relation- entire global produce industry as that of food financial markets, mortgages and more — ship,” says Dan Dempster, president of the safety. Over the past 25 years, the industry has resulted in the loss of consumer confi- Canadian Produce Marketing Association has suffered many incidents that spurred the dence in the safety of our products,” says (CPMA), headquartered in Ottawa, Ontario, entire chain to innovation in this area. “Food Bryan Silbermann, president and CEO of Canada. “The use of UPCs and PLUs were safety may not be an innovation in and of the Produce Marketing Association (PMA) major moves and are now followed by a itself but it has re-shaped the industry,” states in Newark, DE. “To restore that confi- focus on global standards in product identi- Tom Stenzel, president of United Fresh Pro- dence, we’ve seen how essential it is to fication, traceability and E-commerce.” duce Association in Washington, D.C. take action as an industry, and become Category management provided a new “Remember when all anyone cared about innovators doing everything we can to and more accurate way to manage variety was pesticides? At that time, the food indus- show our commitment to food safety.” and inventory. “In the late 1980s and early try tried to communicate that food borne ill- Other areas such as packaging and 1990s when the UPC/PLU system was ness was the main threat, not pesticides. logistics have paved the way for increased established and embraced by the shipper Microbiological food safety came to domi- and new opportunity in marketing prod- and retail community it became possible to nate industry issues in the mid 1990s, with ucts. “If it wasn’t for innovative packaging, accurately track produce sales by SKU,” the start of good agricultural practices the value-added category and all of the reports Spezzano. “This encouraged the [GAPs] and exploded following the spinach berry category couldn’t have grown as far retailer to add variety with the confidence issue in 2006. We’re forever changed, both and as much as they have,” contends Dick Spezzano, president of Spezzano Consult- ing Service Inc., headquartered in Mon- “Some of these new electronic category rovia, CA. “Advances in logistics with better refrigeration, faster vessels and for- management and GPS technologies will allow the ward distribution facilities have put pro- retailers to be better educated on, for duce where the buyer and the customers are located quicker and fresher.” instance, what their shrink is on the Herein, industry veterans further discuss the next five innovations affecting industry shelf and which products are making change in the past 25 years. the highest return and that will have 6: CATEGORY MANAGEMENT them changing quite rapidly from The retail change in mentality to man- one product to another.” aging the produce department by category — John Anderson, The Oppenheimer Group has certainly been a major factor in the

20 PRODUCE BUSINESS • NOVEMBER 2010 held an oversight role of our industry, the “Food safety may not be an innovation in and past 25 years saw an explosion of interven- of itself but it has re-shaped the industry...We’re tion and reaction from multiple agencies on federal, state and local levels. “Govern- forever changed, both in consumer expectation, ment’s role in the past 25 years has clearly been impactful,” says John McClung, pres- buyer and regulatory demands. Can ident and CEO of the Mission-based Texas we grow produce in nature risk- Produce Association. “The catalogue of actions taken at the federal and/or state lev- free? No, but we will spend els is enormous. Just consider the issues currently before the Administration and hundreds of millions of dollars Congress, such as pending food safety laws trying to do so. This is a and regulations, immigration reform, inter- national trade agreements and disagree- phenomenon nobody could have ments, health system reform, environ- mental protection, and on and on. Individ- imagined 25 years ago.” ual issues submerge and resurface as time — Tom Stenzel, United Fresh Produce Association passes, but pressure from government is a constant, regardless of the party in power.” in consumer expectation, buyer and regula- Pilar Charrada, import manager with Val- This increasing intersection of govern- tory demands. Can we grow produce in ley Fruit & Produce Co., based in Los Ange- ment and the produce industry has pushed nature risk-free? No, but we will spend hun- les, CA. “The chance to identify from the industry to greater advocacy and pro- dreds of millions of dollars trying to do so. which farm the fruit comes, where the fruit active action. “We have seen some produce This is a phenomenon nobody could have was packed, and other such details have organizations evolve from a promotional imagined 25 years ago.” significant impact.” orientation to strictly advocacy-based,” says Sanitation and safety issues have always Implemented food safety and traceability Jungemeyer. “That is the case with the FPAA, been a part of the industry, especially at procedures have added new elements to the which now focuses almost exclusively on retail, even if not specifically identified as way product is grown and shipped. “Trace- dealing with legislative and regulatory bod- food safety. “We may not have used the ability is integral to food safety and our pro- ies. Our members are seeing more bang for phrase food safety 25 years ago, but clean duction practices,” says Piet Smit, CEO of their buck when we emphasize hard results, stores and sanitation have always been Western Cape Citrus Producers Forum such as how government can help improve important,” says Maria Brous, director of (WCCPF) in Citrusdal, South Africa. “In our commerce, than with soft results such as media and community relations for Lake- case, each orchard is identified by number. consumer marketing.” land, FL-based Publix Super Markets Inc. As fruit is harvested, that number is attached “As prepared foods became available in the to bins where the fruit is placed when cut 9: CLAMSHELL PACKAGING produce department and product was from trees. Bins maintain that number identity The development and implementation stored longer and shipped farther, the exe- as the fruit transfers to pack houses for pro- of clamshell packaging revolutionized the cution of excellent food safety practices cessing. When packed, each carton receives marketing and merchandising of a variety became imperative. The industry has made a production unit code (PUC) linked to bin of produce categories, especially berries. incredible advances in the understanding numbers and packing dates,” he continues. “For the berry industry, nothing comes of time, temperature and the control of ele- “The PUC is printed directly onto the box, close to clamshell packaging as the most ments that produce food borne illness.” which then moves to a numbered pallet. important innovation,” says Dave Riggs, Indeed, food safety resulted in the cre- Those electronic records are kept and avail- president and CEO of Quail Run Business ation of an entire new segment of the able as needed at each point along the sup- Solutions Inc., in Aptos, CA. “It transformed industry. “It has been a major job creator in ply chain, enabling the fruit to be traced the berry category from a high-labor, low- the private and the public sectors,” says directly to the orchards of origin at any stage.” margin, seasonal item to one of the most Dan Dempster of CPMA. “Dare I say that it profitable, year-round items in the produce probably created more jobs than were 8: GOVERNMENT department. From loss leader to sales likely needed had we been able to tackle INVOLVEMENT leader is a pretty big jump.” this in a more timely manner. This has also While government has for centuries “This has totally changed the berry busi- produced its own challenges as a multitude of solutions sprang up, a major issue for all, which continues today.” The food safety issue segued into trace- “From minimizing the impact of ability demands. “From minimizing the impact of food borne illness outbreaks to food borne illness outbreaks to identifying opportunities for supply chain efficiencies, produce traceability has begun identifying opportunities for supply to truly transform the business and has so chain efficiencies, produce much potential for doing so in the future,” says Lance Jungmeyer, president of Fresh traceability has begun to truly Produce Association of the Americas transform the business.” (FPAA) in Nogales, AZ. “Traceability and per-box tracking has — Lance Jungemeyer, Fresh Produce Association of the Americas been a significant industry influence,” adds

NOVEMBER 2010 • PRODUCE BUSINESS 21 “Improvements in storage technology, refrigeration and logistics...allow suppliers to extend the season for many fruits, vegetables and roots and provide our customers products from around the world.” — Maria Brous, Publix Super Markets Inc.

ness as more than 90 percent of berries are using technology in every aspect of the now packaged this way,” adds Spezzano. supply chain from production and process- “This has taken the labor out of retail, ing to logistics and all the way through to reduced retail shrink and created a superior the consumer,” says PMA’s Silbermann. presentation of berries, thus increasing “Improvements in storage technology, berry sales. It also created pack sizes that refrigeration and logistics greatly improved probably would not have been created the storage and transportation of product,” with the previous packaging.” says Publix’s Brous. “These improvements “When you consider the wide usage of allow suppliers to extend the season for plastic clamshells, it sure has been a game- many fruits, vegetables and roots and pro- changer in the past 25 years,” agrees John vide our customers products from around Shelford, owner and president of Shelford the world.” Associates, based in Naples, FL. Innovation in logistics and transportation The technology also allowed for the have opened new doors of business and development of new products and pre- affected other industry innovations, like global sentations. “The advent of rigid clamshell trade. “Transportation technology has packaging was a big leap forward in improved the speed and quality of commerce, salad packaging, particularly for tender as well as opened up new markets and prod- Reader Service # 82 leaf salads, which are easily bruised,” uct sources,” says CPMA’s Dempster. explains Charles Sweat, CEO of Earth- According to Jungmeyer of FPAA, bound Farm, headquartered in San Juan “Companies have learned that in order to Baustista, CA. “The clamshell helps pro- remain a viable supplier, you have to look tect those delicate leaves from bruising at every aspect of the supply chain, includ- and offers a better product to the con- ing logistics, to retain enough bottom line sumer — more product visibility and bet- results to stay in business. Companies not ter quality product.” looking for logistical efficiencies will essen- Oppenheimer’s Anderson adds, “Some tially be pushed to the side.” of the clamshell type packages were intro- Shippers have demanded and sought duced in response to the need for conven- out logistics solutions to help improve busi- ience sought out by the busy consumer. ness. “Our purpose is to facilitate logistical, The industry looked for more convenient promotional and sales support coordina- ways to deliver fresh produce and subse- tion of their products,” says Gerrit van der quently fresh-cut produce, bagged salad Merwe, chairman of WCCPF. “For exam- and sliced fruit started to take a greater ple, in 2010 we entered into a new contract share of the shelf space.” with a specialized reefer shipping com- pany, Seatrade. This added flexibility in 10: LOGISTICS EFFICIENCIES logistics operations with smaller reefer ves- Improved technology in logistics also sels resulted in a more regular and reliable helped pave the way for innovation in the supply of summer citrus to the U.S. market industry and efficiencies along the entire this season, which benefited importers, supply chain. “We’ve become adept at retailers and consumers.” pb Write To Us PRODUCE BUSINESS invites you to comment on the top 25 Innovations mentioned in this feature -- as well as which innovations you think will change our industry going forward. Please email your comments to [email protected] Reader Service # 14

22 PRODUCE BUSINESS • NOVEMBER 2010 GoingGoing GlobalGlobal Retailers find direct sourcing is fraught with challenges. BY JULIE COOK RAMIREZ

s part of an expansive effort to reduce costs, improve MAKES SENSE IN THEORY speed to market, and present themselves as globally Avenel, NJ-based Foodtown Supermarkets prides itself on buy- conscious organizations working closely with their off- ing directly from growers as much as possible, according to Dean shore suppliers, a number of large retailers have turned Holmquist, director of produce and floral. This philosophy applies to direct sourcing — importing fresh produce directly to both domestically grown and imported produce. Holmquist fromA foreign countries. maintains that going direct helps Foodtown procure the highest From Wal-Mart’s office in Chile to Tesco’s buying arm in Asia, quality produce for its 66 independently owned grocery stores not to mention Socomo, Carrefour’ssourcing divisions in Spain and throughout NewYork, New Jersey and Pennsylvania. “When you Brazil, major retailers are taking bold steps toward building a com- establish a relationship [with a grower], there’sa better connection prehensive system of global procurement. in terms of availability — when product is really promotable — and “Especially in the case of Wal-Mart, there is a push to go direct it makes for delivering a better product to your customers,”explains everywhere they can to drive out the middle-man as a way to have Holmquist. “[The growers] understand who we are and what we a lower margin and offer consumers a lower price,” says Lance are looking for and it just makes more sense.” Jungmeyer, president of the Nogales, AZ-based Fresh Produce While direct sourcing initiatives may have stirred up a slew of Association of the Americas (FPAA).“That is certainly a valid part conversations of late, the concept itself is nothing new. In the 1980s, of their business strategy.” a number of large retailers dabbled in direct importing, only to extri- The sheer size of these chains has given them the ability to cate themselves rather quickly when they discovered“the juice was- consider such a bold undertaking, according to Bruce Peterson, n’t worth the squeeze,” explains Peterson. This current wave of president of Fayetteville, AR-based Peterson Insights Inc., and the direct importing initiatives is merely“the current rendition,”he says. former head of Wal-Mart’sperishables operations. “Over the past That’s not to suggest direct importing isn’t a valid business five to 10 years, a number of major retailers has gotten larger than model. As retailers seek to cut costs, reduce prices and boost their the industry could have ever imagined,” he says. “You are talking corporate image, they are extending their global reach and seeking about organizations procuring almost $10 billion worth of fresh to build relationships with growers around the world. The promise fruits and vegetables on an annual basis. They have a high degree of global sourcing is great, and retailers are increasingly looking to of critical mass, so it’s the belief of some of these retailers that reap the benefits of going direct, albeit with hesitation when they they can save costs by taking what they would consider the mid- begin to see exactly how complex the process of importing produce dleman — the importer — out of the equation and dealing directly really can be. with growers.” “If a supermarket chain has the size, personnel and expertise to

NOVEMBER 2010 • PRODUCE BUSINESS 23 import products directly, and if they can source products in sufficient volume and quality from shippers, there can be greater control and savings by direct buying,” says Nancy Tucker, vice president of global busi- ness development for the Produce Market- ing Association (PMA), in Newark, DE. “But many chains can’t or don’t want to deal with the risks, regulations and proce- dures of importing products.” That hasn’t stopped many of them from trying — with varying degrees of success. Of course, that depends on how you define success, points out Peterson of Peterson Insights. Wal-Mart, for example, went from an environment that was totally dependent on importers to one in which it sources much of its produce direct from growers around the world. Although Wal-Mart would not comment on its practices for this article, Peterson brands its efforts a success, though he’s quick to add it hasn’t come without a price. “Having any degree of success with that is, in fact, a success,” he reasons. “From that standpoint, you could define it as a successful learning opportu- nity, although the tuition may be a little higher than they originally imagined.” Indeed, Wal-Mart and other retailers that have embarked on direct sourcing initiatives are finding themselves faced with a steep learning curve, Peterson notes, as they discover not only how difficult produce importing actually is, but also how much they’ve truly been relying on importers and distributors to provide services beyond simply moving product. “To import fresh fruits and vegetables into the United States is not an easy thing,” he asserts. “It’s a very complex undertaking, and it requires an awful lot of attention to detail.” U.S. retailers often find themselves looking to the U.K. for inspiration — where retailers commonly source produce directly — but FPAA’s Jungmeyer con- tends U.K. retailers are at a distinct advan- tage when it comes to direct importing. Unfortunately, that advantage is not one U.S. retailers could ever hope to replicate. “The U.K. is an island,” he explains. “It’s small. Your product doesn’t have to travel 3,000 miles to arrive at its final destination. That’s a big factor.” It’s also a matter of quality, adds Jung- meyer. Because U.K.-bound produce does not spend an extended period of time being jostled around in a truck, there is less risk of damage.What’smore,thereisnoborderfor the product to cross, so suppliers do not have to deal with inspections related to pests, food safety, pesticides and drug smuggling. “Moreover,” Tucker says, “there are companies in the U.K. that serve as super category managers.” Working in conjunc- tion with supermarket chains, they investi- gate, source, audit, import, repack for private label and help develop consumer

Reader Service # 68 promotions. This has been standard operat-

24 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 57 ing procedure for many years. says communication has been difficult, as Although they may not be willing to admit those in charge of the chain’sdirect import- it publicly for fear of scaring their stockhold- ing can’t seem to make up their minds with ers, many U.S.-based retailers have found regard to from where they want to source their direct sourcing initiatives to be less suc- product. Last year, for example, Mono Azul cessful in practice than on paper, purports tried to do business with Wal-Mart, but the Jungmeyer. The reasons are many — from company was told the chain was getting simple issues with currency exchange and everything it needed from Chile, Scoffield tariff barriers to more complex challenges recounts. Four months later, Wal-Mart offi- related to economies of scale, quality control cials approached Mono Azul asking why and the grower/importer relationship. they weren’t receiving their product direct. “I don’t know if they haven’t found the cor- STRUCTURAL PROBLEMS rect way to make it work, but they haven’t Direct sourcing has proven problematic come on strong,” he discloses. “They’ve for many retailers because of organizational started and then stopped, and whenever issues and deficits in their global sourcing we try to talk to them, we’re told it’s infrastructure, says Peterson. Oftentimes, another person’s responsibility.” the global procurement organizations don’t While it may be true that Wal-Mart has answer to the merchandising division or some work to do with regard to its current buying organization. Rather, they exist as way of doing business, Peterson says he separate entities answering to a different wouldn’tbet against the retail giant, but he hierarchy. Unfortunately, coordinating that would bet that its structure will evolve activity has proven far more challenging over time. than they anticipated. Peterson also cites a basic lack of sophis- IMPORTERS PROVIDE MORE tication—evenignorance—amongthose THAN MEETS THE EYE charged with making critical sourcing deci- Many challenges arise as a result of sions. “It’s often the case that some of the retailers underestimating the value that people that are running these areas may have importers/distributors bring to the relation- a limited knowledge and understanding of ship. Simply put, there’s a general lack of the produce industry in general,”he explains. appreciation for the myriad details that “So they may not be asking the appropriate importers “make go away” for the retailer, Reader Service # 49 questions or setting the proper standards.” says Peterson. It’shighly likely that importers While retailers undertaking the feat of have done such a good job at making such direct importing may end up reaping cost challenges invisible that retailers simply don’t savings, they may find themselves with a realize they exist. As a result, they are all too lower quality product than their importer willing to tackle the job of importing produce had been providing them. Or they may themselves, mistakenly believing it to be inadvertently put themselves at a disadvan- much easier than it is. tage when it comes to their ability to reap “Direct sourcing sounds fairly simple until the kinds of savings that direct importing you delve into what it really takes to bring was designed to achieve in the first place. safe, quality produce through the supply “When retailers go direct and agree to con- chain and into the retail environment,” says tract pricing on the front end, they may end John Anderson, chairman, president and up not doing as well as someone who is CEO of The Oppenheimer Group, head- buying on the open market,”explains Jung- quartered in Coquitlam, B.C., Canada. meyer. “If there’s an oversupply, for exam- “There’sa lot more to it than meets the eye.” ple, they have less latitude in taking Not only do importers bring product to advantage of market fluctuations.” U.S. shores, they also play a key role in According to Marcos Scoffield, a com- ensuring that retailers have what they need, mercial associate at Mono Azul S.A., a when they need it, and that it’sat or above- member of COPEXEU in Rio Negro, par in terms of quality. What’s more, they Argentina, one of the primary issues his constantly have their fingers on the pulse of company has encountered when working the industry, possessing key information directly with American retailers — includ- with regard to the status of the harvest, ing Wal-Mart — is that the chains seem to fruit quality, shipping peaks and probable be constantly shuffling responsibilities pricing, according to TomTjerandsen, man- around. Staff changes occur so frequently aging director for North America for the that there ends up being mass confusion Sonoma, CA-based Chilean Fresh Fruit with regard to who has been contacted or Association, (CFFA). All too often, how- even what kinds of produce are being ever, retailers fail to take into account just sourced from where. “They are just not how much of a role these individuals play in well organized internally,”he laments. “The the entire global sourcing equation. people who came in four months ago don’t “A good marketer-distributor touches even know that we quoted them last year, every aspect of the supply chain — from so they come in asking, ‘Why aren’t we consulting with growers on what to pro- working together?’” duce and how to pack it based on market With Wal-Mart, in particular, Scoffield preferences to arranging reliable trans- Reader Service # 10

26 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 51 28 Reader Service # 58 ocean the for pay and help deals importers the most finance whereas the growers, finance help don’t own. retailers their starters, For on duplicate to would hard-pressed chains be many that value and services consistent chain.” deliver supply the with control can and supply, partnering that about companies more their is to value business are adding many that but realize to shot, coming best “Retailers their it Anderson. given best have details to it,” how on market retailers with and condition partnering its preserves that portation motr rvd naryo important of array an provide Importers RDC UIES• BUSINESS PRODUCE OEBR2010 NOVEMBER hnta rwri o bet ettheir meet to able not is come grower that inevitably when will prove day can the as oversight one disastrous, of just kind on rely This grower. to the attempting make of they mistake opera- fact, this their of for Unaware tions. produce the of receive amount customers right that grow- ensure of to network a ers on recognize rely to importers that fail often retailers initiative, NJ. City, Gloucester in LLC, and U.S.A. Capespan sales Fisher at of marketing president vice Paul senior out Marier, points expenses, other and freight Whenembarkingonadirectimporting hl rcla,s hygttego and the good taking the bad.” the get are they they so truckload, load, whole are direct they a When product. taking 1 No. only the much wants pretty retailer “A FPAA. the Jungmeyer says product,’” of product, 2 No. 1 the No. is the this is this evaluate ‘Okay, say, go and to it able are they dis- here, to tributors question- comes to product due “When quality. or able stock of favorite out is their produce because be either undoubtedly problem will dissatisfied, of clientele cost their the as eating lots, up end for to it likely claim or are however, uses Retailers, other purposes. insurance for importers on par, it to the send up can of not some is If inside customers. produce retail to product along sending and before inspecting shipments of sorting luxury the has importer stranded required suddenly week.” one their are fruit without all they them and give volume to unable supplier that is until supplier go one to than have more to they four realize not or Azul. may Mono “Retailers three of Scoffield from says exporters,” produce in often supermarket, bringing the a to bring volume “Importers trusted own. their on demand anro ere eslf ntetra and tarmac the on left gets berries of tainer con- a when instances those “If have will inevitably good. you but fantastic, for right, goes potential go everything to the things offsets for potential wrong goes the everything feels if he had” right, be “significant a to savings is Argentina. there cost that from admits he directly While sourcing, berries direct buying with experience and past before, road has this down been has Cullen buyer. produce Chile, Cullen, Neil to as according in ico, Mex- and such Guatemala bring Holland, countries Argentina, to from intermediaries produce and with brokers exclusively works retailer the bandwagon. Instead, sourcing direct from the on Market jumping Farmers Sprouts AZ-based they approach.” crop, to bad else someone a have has someone the If monitoring product. continually ground, the on people have They growers. different with several work importers “The Siemienas. issue,” being control says time quality a the “It’s chain. for the least for at — — go to way the product, quality high Siemienassays,importershaveproventobe of requires volume high such Supervalu year-round Because for availability. demand to order consumer in needs meet it produce and the procure bananas to importers as uses chain national such the pineapple, exceptions, few a just With Siemienas. to Michael according spokesperson wide- initiative, a buying on direct embark scale to temptation the ted resis- has Inc. Supervalu MN-based Prairie, RCEIGWT CAUTION WITH PROCEEDING hnteeaeise fqaiy An quality. of issues are there Then iia ocrshv etPhoenix, kept have concerns Similar Eden why exactly are issues Such Reader Service # 19 tomatoes, squash and cucumbers, my truck “A good marketer-distributor touches can go to two or three different warehouses to pick all that up,” he says. “In the end, every aspect of the supply chain — from you’ve got a load that’s going to serve your consulting with growers on what to needs better.” When the supply chain breaks down or produce and how to pack it based on fails to function as intended, retailers engaged in direct importing often have market preferences to arranging reliable nowhere to turn, explains Peterson, as transportation that preserves its there’s no one to go to bat for them. That’s when they begin to appreciate the long- condition and partnering with retailers standing relationships that have kept the steady stream of imported produce running on how to best market it.” smoothly all these years. “They really — John Anderson, The Oppenheimer Group underestimated the relationships between the import community and the growers — some of which go back very far,”says Peter- nobody can find it for 12 hours and then all of Direct sourcing may not be effective at son. “When you get into conflict-resolution a sudden, they find it and open it up and the all for small retailers who have no use for an and other issues surrounding the importing berries are ready for a slushie,” he says. “It’s entire truckload of produce, even if it were of fresh fruits and vegetables, the importers just a matter of the investment in time, as in tip-top condition upon arrival. They have long-established relationships with the well as the logistical support you have to simply don’t have the same economies of grower and they can work through those have to make it work properly.” scale to support such an effort. For those issues, whereas there’s a general distrust of Even then, Cullen can’t say definitively retailers, the traditional system of working new entities entering the equation.” that Sprouts will never turn to direct sourc- with importers works well because it offers In some cases, it’s a matter of trust, as ing. Should the chain ever centralize its the ability to customize deliveries based on retailers have a hard time trusting foreign sourcing — a distinct possibility once it specific needs. Nogales, for example, serves growers to be honest and work with them to surpasses its goal of opening its 100th store “almostlikeaterminalmarket,”saysFPAA’s resolve any issues that may arise. In at least by the end of 2013 — Cullen says direct Jungmeyer, because there is the ability to one instance, that distrust has prevented a importing may be in the cards. “If we want put together a mixed truckload of produce burgeoning direct importing relationship from to go to another 100 stores, I would imagine that will better serve a retailer’s needs. “If I coming through to fruition. “There’s no that would be the right thing to do,”he says. want to put together a mixed load of grape question that Mexican shippers would like to Reader Service # 28

30 PRODUCE BUSINESS • NOVEMBER 2010 be shipping directly to U.S. buyers, but the At the same time, the world’s largest Wal-Mart does is put under the collective buyers want somebody on the American retailer has publicly stated that it will never microscope of the retail community, where side to be held accountable if there are prob- be 100 percent reliant on direct importing. it is carefully analyzed and dissected. And lems,” remarks John McClung, president of Mono Azul’s Scoffield expects Wal- there’s little doubt that Wal-Mart’s com- the Mission-based Texas Produce Associa- Mart and other large retailers to continue petitors are keeping a watchful eye on what tion.“Holding Mexican shippers accountable ramping up their direct importing, but he the giant is up to, as they look to replicate is seen as problematic.” stresses the need for patience. “They such initiatives — and they will, says Peter- wanted to go from nothing to 50, 60, 70, 80 son. If their budgets cannot afford it now, LOOKING TOWARD percent very quickly,” he asserts. “In the then sometime in the future, but it’s no THE FUTURE end, they will get there, but they need to longer a matter of if, it’s only about when. If growers in Mexico and other countries understand that it’s going to take them a “The only thing that may delay that is the get their way, and direct importing becomes few years and they need a team and a financial performance of the publicly held more widespread, the impact on the pro- structure, not just a couple more people on companies,” he says. “If this becomes too duce industry would be far-reaching. the desk.” much of a drain on resources that they can CFFA’sTjerandsen says he would expect to Jungmeyer doesn’t think direct sourcing apply somewhere else, they may slow the see a great deal of consolidation in the will ever reach 100 percent. In fact, he would growth down in the short-term. But this importer arena, while Peterson wouldn’tbe be surprised if it even reached 50 percent of snowball is rolling down a hill and it’s only surprised if the move toward direct sourcing the volume — simply because many retailers going to get bigger over time.” pb affects the domestic produce industry as are unable to achieve the kind of economy well. “It’s really a big strategic shift because of scale necessary to achieve the desired it starts to define not only the role of the ROI. And then there’s the multitude of supplier in the international arena, but in the issues that retailers are either not qualified domestic arena as well,” says Peterson. “If to handle or with which they simply don’t all a supplier does is provide products, why want to be bothered. “In the end, retailers do I need you?” are retailers and growers are growers,” he For more information on international trade, please go to www.producebusiness.com Last year, Wal-Mart announced its says. “The trend toward direct buying is intention to expand direct importing of going to continue, but I don’t see it becom- fresh produce through a network of pro- ing the de-facto way of doing business.” curement offices in South Africa, New Yet, as Wal-Mart continues venturing Zealand, Brazil, Chile, and other producing further into the world of direct sourcing, countries. The system is built on the model that alone ensures a continued focus on of Wal-Mart’s UK-based subsidiary Asda. direct sourcing. After all, everything that

NOVEMBER 2010 • PRODUCE BUSINESS 31 Ensuring consumers know sweet onions are available through the winter will increase rings. Six No-Cry Ways To Sell More Imported Sweet Onions This Winter South American production kicks off the season that wraps up in Mexico in April. BY CAROL BAREUTHER, RD

he barbecue grills might be packed fastest growing segment of the onion category.” Overall exports from Peru were down on away and hearty vegetable soups To support consumer demand, DeBerry de- the front end of the deal this year. Barry Rogers, substituted for salad greens on the tails, “We import sweet onions from Peru Oc- president of the Sweet Onion Trading Co., in supper table, but the cold winter tober to December; from Chile December to Melbourne, FL, says,“Peru was a bit short due T weather hasn’t deterred consumers’ February; and from Mexico February to April to demand in other countries and the winter desireforsweetonions.Infact,there’snowa when the 1015s begin harvest in Texas.” was cooler than normal, which affected yield.” seamless supply of sweets that retailers can Onion imports from Peru during the “However,” adds John Shuman, president merchandise right next to the red, yellow and months of October, 2009, through March, of Shuman Produce Inc., in Reidsville, GA,“the white onions to maximize category sales. 2010, represented 105.6 million pounds and cropoutofPerufortherestoftheseasonlooks Mike Maguire, director of produce for De $16.5 million in sales, according to USDA/ERS on track with the previous year. The market Moulas Market Basket, a 62-store chain based statistics, or an increase of 41 percent in vol- eased with favorable pricing and promotable in Tewksbury, MA, remarks, “Sweet onions ume and 34 percent in dollars over the same supplies by mid-October.” have changed from a seasonal to year-round time from the year prior. Marty Kramer, sales manager for the category and sales are strong both in summer Some companies start importing Peruvian Northeast office of Keystone Fruit Marketing and winter.” sweet onions as early as August and continue Inc., headquartered in Greencastle, PA, says, through February. Ira Greenstein, president “We have ongoing research and development 1. Winter Availability and owner of Direct Source Marketing, in projects in a variety of other countries such as “Consumers have learned that a sweet Mount Kisco, NY, says, “The Pacific region of Nicaragua, Costa Rica, Guatemala and onion is a nice treat in the winter,”shares Cur- Ica, Peru, provides ideal growing conditions to Ecuador, which have the right microclimates tis DeBerry, owner of Progreso Produce Co., in produce a beautiful blond-skinned, flat to grow a sweet onion and are areas of contin- Boerne, TX. “That’s why sweet onions are the Granex-type sweet onion.” gency primarily during the Peruvian season.”

32 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 16 Peak promotional volumes for imported “It is our job as responsible marketers to offer Peruvian sweet onions, according to Kramer, “are from October 15 to January, right through our retail partners the right onion at the right the holidays.” time from the right growing region. This helps Matt Curry, president of Brooks, OR-based Curry & Co. Inc., says, “Our Chilean Patago- us assure our partners that we’re delivering the nia Sweets are available from January through onions they expect.” March. Like Peru, the hot days and cool nights — Matt Curry, Curry & Co. Inc. in Chile are perfect conditions for us to grow our sweet onions from patented seeds specifi- rector of sales for Frontera Produce Ltd., lo- many customers want to buy American and cally developed for the mineral-rich soils.” cated in Edinburg, TX, remarks,“The window this gives them the opportunity to do so.” Onion imports from Chile during the we import sweet onions from the Tampico area months of December, 2009, through March, islateFebruaryintoMarch.Thisisthefirst 2. Seasonal Competition 2010, represented 23.9 million pounds and sweet onion of the season that’s trucked, as op- And Opportunities $6.7 million in sales, according to USDA/ERS posed to shipped in, so there’s a cost savings.” Supplies of domestically grown sweet statistics, or an increase of 56 percent in vol- “In the future, we’re looking at opportuni- onions from states such as California, New ume and 74 percent in dollars over the same tiesinthehigherelevationsinMexicotogrow Mexico,NevadaandNewYorkareoffering time from the year prior. asweetonionthatharveststowardtheendof competition to imports. Curry & Co.’s Curry The Chilean crop is scheduled to start the Peruvian season,”discloses Richard Pazder- explains,“Domestic sweet onions were prima- around the“normal”time, says Curry.“We ex- ski, director of sales and marketing at Glenville, rily a late spring through summer program. pect our first shipments in early January.” GA-based Bland Farms LLC. New varieties and expanded growing seasons Brian Kastick, president and CEO of Oso Next February, Stockton, CA-based Onions are having an impact on the window of avail- Sweet Onions, in Charleston,WV,notes,“Strong Etc. Inc., will import sweet onions from ability for imported onions.” promotional volumes are available during the Hawaii.“We sold a few last year and will bring Oso Sweet onions, for example, are now last two weeks of January and all of February.” in bigger shipments this season,” says owner available all year, says Kastick.“This means we The United States imports onions from and president, Derrell Kelso, Jr.“These prima- not only grow our onions in Chile, but also Mexico year-round. However, Chris Eddy, di- rily compete with the Oso Sweet deal, but now in Texas, California and New Mexico.” Reader Service # 11 Reader Service # 81 Reader Service # 31

34 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 32 “Customers in this economy would rather pick up one or two onions as opposed to eight or nine. This is why the bagged sector hasn’t grown as fast as the 40-lb. boxes.” — Curtis DeBerry, Progreso Produce Inc.

“Similarly,” says Sweet Onion Trading’s so this is affecting our market.” Rogers, “we are growing fine sweet onions in Progreso’s DeBerry adds,“There have been parts of California and Nevada, which are big strides in testing for pungency. However, high-quality.” it would take one large retailer to make it In addition, Bland Farms imports sweet mandatory in order for a uniform pungency onions from Peru during the fall and also standard to exist and for this to be driven sources sweets during this time frame from back to the ground.” New York, Idaho, Utah and Washington in In the meantime, Curry emphasizes, “It is order to fulfill consumer demand at an afford- our job as responsible marketers to offer our able price. retail partners the right onion at the right time Domestic sweet onions are inexpensive from the right growing region. This helps us compared to those from Peru, says Direct assure our partners that we’re delivering the Source Marketing’s Greenstein.“Therefore, we onions they expect.” plan to ship a conservative amount of Peruvian sweet onions into the United States this fall,” 3. Keep Sweets Front-And-Center he reveals. “This will change in December “Sales of sweet onions are so good,” says when the domestic supply is exhausted. The Market Basket’s Maguire, “that we’ll feature problem is that some of these domestic sweet them on end-caps.” onions don’t meet a minimum pungency level, Keystone’s Kramer says, “End-caps, stand- Reader Service # 12 Reader Service # 72

36 PRODUCE BUSINESS • NOVEMBER 2010 alones, value-added product offerings, multi- Separation and identification are keys for Bagged product represents approximately size strategies and consumer bagged displays imported sweet onions. Curry & Co.’s Curry 30 percent of sweet onion sales. However, offer consumers multiple buying options and advises,“Make sure your display clearly catches Curry contends, “We have seen an increase in ensure sales lift.” customers’ eye and that it is obvious that you bagged sweet onions. This has helped sales by It is important to put sweet onions in a have an imported sweet onion display. Retail- providing customers with a value item on prominent place in the produce department. ers that make the most of their sweet onions sweet onions. It has also increased shelf space Bland Farm’s Pazderski explains, “This is be- might have point-of-sale material up, or offer and given bulk and bagged sweet onions more cause many consumers think they are only both bagged and bulk sweet onions.” opportunities to capture a consumer.” available in the spring and summer and there Many importers offer a variety of POS. For Grower/shippers and importers are contin- can be a lot of missed opportunities for sales example, Oso Sweet offers high-graphic ban- ually innovating packaging design to catch the in the winter.” ners and sign cards that can be customized to consumer’s eye, provide useful information “Secondary displays,” says Shuman Pro- include a retail-specific message, recipe or and boost retail sales. Shuman Produce’s Shu- duce’s Shuman,“are very effective, especially in health benefit. “The retail benefit of making man, says,“Our 2-, 3-, 4- and 5-lb. bags feature the weeks leading up to the winter holidays.” sure customers know sweet onions are avail- high-graphic labels and information such as An attractive sweet onion display starts at able in the winter are that sweet onions gener- recipes, and during the fall, great recipes for the packinghouse. DeBerry remarks, “Most ateanincreaseingrosssalesandnetprofits,” making a holiday meal featuring sweet onions.” offshore growing areas have cup-sizers that says Oso Sweet’s Kastick. On-pack recipes have made it easier for re- weigh each onion. This means we aren’t seeing tailers to cross-merchandise, Shuman adds. as much scattered sizing as we have in the past. 4. Bulk And Bagged “We believe that pairing our product with A display looks nicer when it’s built with uni- Together Create Bigger Sales other items included in these recipes is a great formly sized onions.” Most imported sweet onions, especially the way to increase sales of sweet onions.” Jose Manzano, director of produce at jumbo and colossal size, are sold in bulk, ac- Onion’s Etc.’s Kelso agrees. “There are two Dorothy Lane Markets, a three-store chain cordingtoProgreso’sDeBerry.“Customersin ways to sell more sweet onions,” he declares. based in Dayton, OH, says, “We display all of this economy would rather pick up one or two “One is to give the product away and retail it our onions together and we make sure there is onions as opposed to eight or nine,”he points for a cheap price. The second is to give value to good signage so that customers can easily se- out. “This is why the bagged sector hasn’t the consumer by teaching them new ways to lect the type of onion they desire.” grown as fast as the 40-lb. boxes.” use it.” Reader Service # 73

NOVEMBER 2010 • PRODUCE BUSINESS 37 This fall, Onion’s Etc. is offering 2-lb. sweet the winter,”according to Curry & Co.’s Curry, tions for Melissa’s/WorldVariety Produce Inc., onions from the Northwest and Peru in bags “isdoubtingthatastrongimportsweetonion headquartered in Los Angeles, CA, which featuring a salad recipe that includes avocados, program will drive sales. Customers are often distributes sweet onions from Peru, remarks, radishes and grapefruit. In addition to the driven by what they see, and retailers who con- “Sweet onions work well in soups, stews, recipe, a sticker on the front of each bag iden- tinue to celebrate that they have sweet onions crock-pots and other cold-weather recipes. tifies the variety, where the onion was grown, a in the store will continue to see strong sales.” During the Thanksgiving and Christmas URL address that links to photos of the farm, “Sweet onions are cross-merchandised holidays, there’s a huge potential to bring farmer and to additional recipes, health facts with cucumbers and peppers in the summer something new to traditional dishes from an and handling tips. at Market Basket,” says Maguire, “and in the ingredient that was once only seasonal.” fall,we’lltietheminwiththecarrotsandpo- “One of the most popular wintertime sweet 5. Cold Weather Merchandising tatoes.” onion recipes offered by Keystone Fruit “The primary merchandising challenge in Robert Schueller, director of public rela- Marketing,” says Kramer, “is for Sweet Onion Bisque. It’s simple and dynamic.” Sweet onions and football season go hand- in-hand, maintains Direct Source Marketing’s Greenstein. “They are ideal for making fresh salsas and guacamole and in dishes like tacos.” Oso Sweet’s Kastick agrees, “Super Bowl is a great time to promote Chilean sweet onions.” “In late February and early March, cross- promoteimportedsweetonionsoutofMexico with steaks for grilling and play on an early spring theme,”recommends Frontera’s Eddy.

6. Go Beyond Price Promotions “In the winter, as well as spring and sum- mer, sweet onions are a regular part of our promotions,” acknowledges Manzano of Dorothy Lane. Sweet onions have remained a steady per- former throughout these challenging eco- nomic times.“Still,”says Curry,“it’s important to maintain promotions and visibility of sweet onions, in everything from circulars to social media efforts, to make sure sweet onions are on customers’ radar screens.” There’s no longer a huge price gap between imported and domestic sweets, notes Pro- greso’s DeBerry. “Imported sweets — at the most — are 50-cents per pound more expen- sive than regular yellow onions, and on aver- age, this is closer to 20- to 30-cents.” Beyond price, themed promotions are an effectivewaystosellimportedsweetonions. On the heels of a successful Shrek campaign this summer with Vidalia onions, both Shu- man Produce and Bland Farms contributed to breast cancer awareness in October. Shuman supported Susan G. Komen for the Cure by adding promotional tags on pack to promote the sponsorship in which the company do- nated $10,000. Bland Farms, which donated $20,000 to the Breast Cancer Research Foun- dation, marketed bagged sweet onions from Peru with pink-colored PLU stickers,logos and 40-box display boxes.“Sometimes,”says Bland Farm’s Pazderski, “it’s more effective to put all your effort behind one big promotion than five little projects.” pb Reader Service # 33

38 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 5 Sugar snap peas and papayas are just two of the PHOTO AT RIGHT COURTESY OF BRROKS TROPICALS LLC many products grown in Central America. Central American Produce: Such Bounty, So Close With winter almost here, look to Central America for high-quality fruits and vegetables unavailable from domestic sources. BY MEREDITH AUERBACH

he big picture from the 10,000-foot berries, although still relatively small, had big giving us a year-round supply on most items.” peaks of Central America shows a growth in value as well. Just glancing at television cooking pro- slow but steady growth of fresh For fresh vegetables, the growth rate in re- grams, food magazines and recent cookbook fruit and vegetables over the past gional value is about 5 percent. Looking at releases show popular and trending cuisines T five years. After all, the countries of mainstream and emerging niche products, feature the indigenous foods of Cuba, Costa Central America, including Guatemala, Hon- snow peas and sugar snap peas, Brussels Rica, Guatemala and other countries nestled duras, Nicaragua, Costa Rica, Belize and sprouts, tomatoes, broccoli and cucumbers all around the junction between North and South Panama, offer ideal growing climates and grew in excess of 100 percent for the first seven America and the Pacific Ocean and Caribbean micro climates, counter-seasonal products, months of this year over last year. The 2009 Sea. Changes in populations and media habits plentiful land, good labor supply and easy ac- total for fresh fruits and vegetables imported drive food trends. It can become a point of dif- cessibility to U.S. markets. into the United States from Central America ferentiation for a retailer to stock these less fa- AccordingtostatisticsfromtheForeign topped $1.6 billion. miliar varieties, along with products key to Agricultural Service (FAS), whose Global Agri- Jay Bennett, produce procurement man- authentic Caribbean cuisines. cultural Trade System (GATS) tracks U.S. im- ager with the Plant City, FL division of Albert- The counter-seasonal nature of Central ports, traditional produce such as bananas and son’s LLC, reveals, “We have a long list of America means that tropical, subtropical and pineapple still dominate the fruit trade and con- produce items from the various countries of temperate climates are able to grow produce tinue to grow in value, up significantly in the Central America: fruits such as berries, limes, items on a year-round basis and act as a major same seven-month period of January through mangos and pineapple; vegetables as typical as source of supply, especially to the Eastern half July, 2010, compared to the same period a year cucumbers, radishes, fresh herbs and snow of the United States during the winter months. ago. Mangos are down, however, and papayas peas; and more exotic choices including boni- Dan Sutton, director of produce procurement are up. Overall, fresh fruit imports from Central ata, calabaza and malanga roots. In Florida, we at Boise, ID-based Albertson’s LLC, notes, “If America have increased 19 percent during the have close ties to Central America, and our the product in question can be purchased from period. Fresh melons have decreased in value customers are very familiar with these items — a local or domestic grower, and if the quality is across the region, but watermelons — especially we don’t consider them exotics,”he continues. superior and the price is competitive, then we in Guatemala and Nicaragua — have experi- “Central America allows us to offer them certainly buy it from domestic sources. Because enced explosive growth in the past year. Fresh throughout the late fall and winter months, seasonality can control quality as well as a por-

40 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 64 it’s a tax-free environment. Land and labor are “It typically costs less to ship by boat from plentiful and the seasons fill in voids in do- Central America than by truck from California. mestic supplies. In the 90s, our company worked to upgrade agricultural practices, food Good logistic services and facilities are available; safety, worker safety and workforce training. there’s strong U.S. government support; and it’s We now ship product to Europe and South America as well as the United States.” a tax-free environment. Land and labor are Marketing director, Mary Ostlund, of plentiful and the seasons fill in voids Homestead, FL-based Brooks Tropicals LLC, says, “What’s great about Central America is in domestic supplies.” that it is, indeed,‘central.’For us, it’s right next — Charlie Eagle, Southern Specialties Inc. door. We import from all the countries, but Be- lize, Nicaragua, Costa Rica and parts of Mexico tion of the pricing equation, then the reasons for the company, which is based in Coral areourmainsources.Ourprimaryproducts for sourcing from Central America — or any- Gables FL. are tropicals: papaya, thin-skinned avocados where — are for us probably ranked as sea- While U.S. markets are an easy — and ex- and pineapples, which thrive in the great year- sonality, quality, price.” pected — fit, Europe also beckons, sometimes round growing climate.” Dan McCullough, vice president of pro- offering a better currency trade. However, it is duce and floral at Ahold USA Inc., located in often larger companies that can more easily ad- Specialties Build the Selection Portfolio Carlisle, PA, follows a similar strategy, noting, dress the certification requirements that sophis- Beyond the traditional mainstay list of trop- “Customers prefer domestic product, but un- ticated European and U.S. markets demand. ical items, specialty crops comprise a small but derstand that for us to offer certain seasonal increasing role to importers and retailers seeking items such as bush berries, sugar snap peas, as- Distance Counts highly desirable and profitable niche selections. paragus, melons or a number of other warm- “We started growing and shipping prima- Michael Parr, general manager of Team weather items, Central America is a viable rily from Guatemala and Belize to the United Produce International Inc., in Miami, FL, con- option. We consider our winter months States more than 20 years ago, originally be- siders many of these specialty crops as bridge through early spring to be the Central America cause of the proximity to North America,” re- products because of their seasonal nature. season,” he continues. “Quality and cost are ports Charlie Eagle, vice president of business “We’ve had great success with blackberries very important considerations, and Central development for Southern Specialties Inc., grown in Guatemala and Asian vegetables such America has a history of being right on both. It headquartered in Pompano Beach, FL,“It typ- as snow peas and sugar snaps from Honduras,” has become an important source for us.” ically costs less to ship by boat from Central he shares.“There’s a real geographic advantage America than by truck from California. Good to Honduras and Guatemala compared to More Integrated Sourcing logistic services and facilities are available; wherewestartedinChile.We’realsolooking “One of the biggest changes over the past there’s strong U.S. government support; and at opportunities in Brussels sprouts, broccoli few years is the consolidation of companies and okra. We work with smaller farms that involved in Central America,” reveals Ken have grown to meet the world-class standards Kodish, melon team leader for Ayco Farms youhavetohavetobeinthisbusiness.” Inc., in Deerfield Beach FL.“Younow find ver- Southern Specialties has developed lines of tically integrated operations that can control value-addedproductsandaddedaprivate the entire process from seed through all the label line. Eagle explains,“We see consumers as agricultural practices, including food safety, time-strapped, yet health-conscious. Our aim packing and shipping. It started with the big- is to grow to the needs of the market, con- ger commodities such as what we do with sumers that are looking for easy-to-prepare, melons and personal-sized watermelons and virtually grab-and-go choices. That means mi- is moving on to other areas. Working as a ver- crowave bags and well portioned packages. tically integrated company in Central Amer- We’re even serving high-end restaurants with ica, for example, we can pick melons at high our Asian vegetable products. We call our pre- Brix and pack and ship them within three mium line Southern Selects, which includes days. The consumer gets a better piece of fruit vegetables, blackberries, mangos, papayas and that is ready to eat,”he concludes. putaya—ordragonfruit. Del Monte Fresh Produce N.A. Inc. is an- As time goes on, vertically integrated com- other company with a decades-long history of panies put more energy and focus into seed va- growing fruits and vegetables in Central rieties that are well suited to Central America’s Americafromseedtostore.“Wegrowandim- varied climates areas and soils. Ayco Farms’ port bananas, honeydews, cantaloupes, wa- Central American Kodish discloses,“We constantly seek new seed termelons, tomatoes, peppers, a tropical line melons have varietieswithflavor,sugar,maturityandlonger and Del Monte Gold Extra Sweet pineapples experienced shelf-life attributes that will allow us to farm explosive growth from the region,” details Dionysios Christou, in the past year. additional products and improve those we vice president of North American marketing have now. Like other areas of the world, Cen-

42 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 23 ieNote Side tral American agriculture is constantly evolv- tou says, “With more consumers becoming PICK YOUR CLIMATE ing and improving.” aware of the benefits of incorporating fresh produce into their diets, the demands for year- entral America offers climate re- Nutrition Momentum round, premium quality produce are increas- gions ranging from tropical to tem- In addition to the thrust of cooking and ing.” Central America’s bounty helps meet Cperate, ideally suited to the needs food trends, renewed emphasis on healthful those demands during winter months. of products as varied as snow peas and eating is a positive sign for importers of Cen- As Kodish says, “It’s all about information pineapples, blackberries and bananas, tral America’s fruit and vegetables crop. Retail andhowwellyouuseittohelpcustomersat watermelons and papaya. Guatemala has stores can become the nexus of quality selec- all levels of the supply chain.” Providing fun become the top growing locale in the tion, education on new products and varieties ways to encourage shoppers to try less familiar area because it includes tropical, sub- and a commitment to help consumers make fruits and vegetables from regions like Central tropical and temperate growing regions. better food choices as they purchase fruits and America and increasing their produce pur- The variety of areas throughout the re- vegetables for family meals. Del Monte’s Chris- chases is a win-win situation for everyone. gion means many crops can be grown year-round to fill windows of opportunity once domestic sources are finished for the year. “Pineapple and bananas can only grow in tropical climates such as those found in many Central American countries and are available all year long no matter the season,” explains Dionys- ios Christou, vice president of North American marketing for the Del Monte Fresh Produce N. A. Inc., in Coral Gables, FL. “In other areas of the region, mild dry winters mean we can grow melons dur- ing a time of year when domestic mel- ons are not available.” “Starting plants in greenhouses is a relatively recent development,” says Charlie Eagle, vice president of business development for Southern Specialties Inc., headquartered in Pompano Beach, FL. “This method leverages climate is- sues, speeds up the whole growth process and shaves up to a couple weeks off the growing time.” “Greenhouse seedlings start for 10 to 14 days and then get planted under plas- tic tenting that protects the plants from disease or insects before removal when the plants flower,” details Ken Kodish, melon team leader for Ayco Farms Inc., in Deerfield Beach, FL.

Looking to the Future Because the future looks so bright for Cen- tral America, established companies now have the option to think about the long-term future. Eagle sums it up. “Underlying everything we do is stewardship of the land with a focus on sustaining it for future crops and generations,” he asserts. “We are constantly thinking about the education of people; the support of our workforce; ensuring the quality of the water supply; keeping soils replenished and seeking crop varieties that allow proper rotation. These arethefactorsthatwillkeepthisagricultural system going in the future.” pb

44 PRODUCE BUSINESS • NOVEMBER 2010 Let customers know when avocados are ripe and ready to eat, PHOTO ABOVE COURTESY OF APEAM as they outsell unripe fruit by a 2-to-1 margin. Mexican Avocados Fill The Void Left In Domestic Off Season

With a truly year-round crop, avocados from Mexico keep retail shelves full and consumers happy. BY K.O. MORGAN

oday’s health conscious consumers continues.“The California supply is not avail- Oxnard, CA-based Mission Produce Inc. “For are well aware of the many health able year-round, and typically is not distrib- instance, right now California avocados are benefits of avocados, and many are uted to the East Coast in great abundance rich, creamy and buttery delicious because it is very specific in what they expect in during the season. So Mexican avocados can late in the season when avocados are at their T taste and quality. Mexico’s warm cli- serveasagreatchoiceforretailersonaseasonal peak. At this time of year, Mexico is early in the mate, rich volcanic soil and adequate amounts or even on a year-round basis.” season so its avocados don’t have the oil con- of rainfall combine perfectly to provide a fertile “The Hass avocado has become the gold tent yet and therefore are bland and watery. For environment for retailers who want to meet standard in terms of flavor,”adds Moore.“And that reason, a retailer doesn’t want to put a customers’ demands for avocados all year long. Mexico is an important part of ensuring that lesser quality avocado on a shelf next to one “If you look at where Mexican avocados are Hass avocados are in the marketplace at all that is excellent quality, which is why retailers grown and the climate there, it’s a pretty perfect times, whereas California and Chile — the don’twantavocadosfromtwodifferentcoun- place to grow avocados,” says Allison Moore, other big producers of Hass avocados — are tries of origin on the shelf at the same time.” communications director for the Fresh Produce not in production all the time because their cli- Rob Wedin, vice president of fresh sales at Association of the Americas (FPAA),in Nogales, mates are not conducive to year-round avo- Calavo Growers Inc., headquartered in Santa AZ. “You don’t have to worry about freezing cado growth. That said, Mexico, California and Paula, CA, agrees. “It is not realistic to ask re- temperatures and can store the avocado on the Chile are working together to ensure con- tailers to carry one source of avocados along- tree instead of storing it off the tree. This way, sumers that Hass avocados are available when- side another. Each avocado source plays an its great tasting flavor is allowed to develop.” ever they want, no matter what time of year.” important role in the market.” “Mexican avocados can serve as a great Offering Mexican avocados to consumers “Mexican avocados get that really rich taste choice for retailers on a seasonal or even on a doesn’t necessarily mean competing with do- that people expect from avocados,” remarks year-round basis,” remarks Doug Meyer, vice mestic avocados.“Because the seasons of vari- Moore of the FPAA.“So, it’s important for re- president of sales and marketing at West Pak ous countries overlap or stagger, there are tailers to stock them because consumers love Avocado Inc., based in Alvarado, CA. “Mexi- different ripening conditions that affect the and expect that flavor from their avocados.” can avocados are the Hass variety, as are do- taste of avocados,”states William Tarleton, di- “I don’t know if it’s necessary to carry Mex- mestic avocados from California,” he rector of marketing and communications at ican and domestic avocados alongside each

NOVEMBER 2010 • PRODUCE BUSINESS 45 ADVERTISEMENT

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Reader Service # 36 “We never offer two different products from able.“During the U.S. growing season, our par- two countries at the same time. When domestic ticular consumers prefer buying American over another country,” admits Sprague. “But avocados are in season, our customers will we’ll stock Mexican avocados when there are buy American. But Mexican avocados can no U.S. avocados available.” Moore believes consumers will buy Mexi- provide consumers with product at other can avocados when they realize how great tast- times of the year.” ing they are. “Mexican avocados are more flavorful in comparison to those placed in stor- — Nick Sprague, Hannaford Bros. Co. age, as many domestic avocados are,”she says. “In fact, when an avocado is ripened in storage other in the produce department, but rather in season, our customers will buy American. But rather than on the tree, it has proven time and place of one another because the Mexican av- Mexican avocados can provide consumers time again that if the flavor is unsatisfactory to ocado season gets going when the California with product at other times of the year.” consumers, they will not buy it again.” season is winding down,”explains Jill Kramm, “Domestic avocados complement Mexican “Education is key in overcoming safety is- buyer/inspector for Supervalu Inc., located in avocados’ year-round availability; therefore, it sues,” Escobedo asserts. “Retailers and cus- Eden Prairie, MN.“The California season is the is not necessary for retailers to display both ori- tomers need to be aware that after rigorous summer, but once you start getting into late gins,” adds Emiliano Escobedo, marketing di- inspections by the USDA and SAGARPA in the September and early October, it turns into the rector for APEAM (Association of Producers packing facilities, every container of avocados Mexican and Chilean avocado season with and Exporters of Avocados from Mexico), from Mexico is sealed by a USDA inspector Mexico slightly ahead of Chile. The great thing based in Los Angeles, CA. prior to traveling to the U.S. border — most of about Mexican avocados is that it’s a year- them entering through Texas. Only U.S. Cus- round crop because the Mexican avocado has Overcoming Consumer Concerns toms and Border Protection (CBP) is allowed to four flower blooms each year.” In recent years, food safety issues sur- break the seals in order to inspect them once “We never offer two different products rounding imports from other countries have they are in U.S. territory. After the CBP inspec- from two countries at the same time,” states givensomecustomerspauseaboutbuyingfor- tion, the load is sealed again until it arrives to Nick Sprague, category manager of fruit at eign products. Overcoming those fears can be the next destination, which could either be in Hannaford Bros. Co., headquartered in Port- achallengeforretailers,evenduringoffsea- Washington, D.C. or an in-out facility in Texas, land, ME. “When domestic avocados are in sons when domestic avocados are not avail- where a Federal Inspector will break the seal and Reader Service # 69

48 PRODUCE BUSINESS • NOVEMBER 2010 to the toughest world-class standards for food APEAM, MHAIA AND THE HASS AVOCADO BOARD safety,” contends APEAM’s Escobedo. “Our etailers can get help in moving Mex- “To help arm retailers with the tools Dry Matter Standards Quality Program en- ican avocados off the shelves they need, Avocados from Mexico offers suresallorchardsandpackinghousesship through a variety of resources. As- the S.M.A.R.T. (Storing Merchandising Ar- only the highest quality fruit. Executed by a Side Note R sociation of Producers and Exporters of ranging Ripening Training) Kit to train pro- third-party company, inspectors test fruit for Avocados from Mexico (APEAM), the Mex- duce managers about the latest in Best dry matter content to make certain each or- ican Hass Avocado Importers Association Practices for handing and merchandising chard meets our requirements. In addition, (MHAIA), and the Hass Avocado Board avocados from Mexico,” adds Escobedo of Avocados from Mexico abide by standards (HAB) all offer comprehensive promotional APEAM. that exceed international standards, including programs for retailers, including towers “I think some retailers do a really good fruit coding and harvest data that can provide and bins, in-store displays and contests, job in terms of saying flavor and quality trace back to the farm in less than one hour; consumer POS materials and circular and guarantees, but sometimes produce peo- handpicked fruit that never touches the graphics. ple don’t have resources behind them to ground; leading-edge food safety technology; “At West Pak Avocado, we work closely really know what to share with con- independently certified packers; and orchards with these associations to bring our retail sumers,” says Allison Moore, communica- that abide by strict guidelines for food safety, partners great programs aimed at gener- tions director for the Fresh Produce sanitary standards and product quality.” ating more revenue for their avocado cat- Association of the Americas (FPAA), in No- In addition to all these precautions, there is egory and the produce department as a gales, AZ. “That’s where programs such as also a mandatory quality inspection for avo- whole,” notes Doug Meyer, vice president those offered by the Hass Avocado Board cados — a predetermined minimum stan- of sales and marketing at West Pak Avo- help out.” dard,agreeduponbyallU.S.growers,which cado Inc., in Alvarado, CA. “The bottom line is that avocados orig- must be met for avocados imported into the “MHAIA research reveals that shoppers inated in Mexico,” says Escobedo. “The United States. Moore adds,“Once a company will purchase more avocados when they combination of growing conditions and has invested that much time and money in a are exposed to their health benefits, avo- generations of expert cultivation produces product, it would be foolish not to make sure cado photography, usage suggestions for a consistent quality, flavor, size and tex- it meets these standards. The growers and salads, soups, sandwiches, burgers, etc., ture that have been perfected to be dis- shippers really do see rigorous inspections as and a label on the avocado that tells tinctly delicious. Plus, avocados from the culture of doing business.” shoppers it is ripe and ready to eat, be- Mexico are handpicked from our groves cause ripe avocados outsell other stages and shipped to the U.S. market within Optimizing Sales by a 2-to-1 margin,” claims Jacqueline three to four days, so they are always How can retailers encourage customer Bohmer, marketing director for the MHAIA, fresh, ripe, creamy and smooth. And that’s confidence in avocados from Mexico? One which is in Coral Gables, FL. what customers wants!” pb way is through attractive displays.“Make sure youhaveconsistentlyripedisplays,”advises inspect the quality of the product once more. Each truck that comes across the border is then Wedin of Calavo Growers. “And place those After they have certified that the quality of the inspected 100 percent of the time by the avocados near lemons and tomatoes, not in the fruit has met the required standards, only then USDA. Then, at the border, there is a variety of cold rack,”he adds. will the product be released for distribution.” inspection agencies that make sure no contra- “Typical promotions for avocados include the Tarleton of Mission adds,“There have been band is in with the avocados, that there are no Superbowl and Cinco de Mayo,”offers Moore. tremendous strides over past 10 years in en- errors on paperwork and that you are actually “Retailers can create hype and increase sales suring food safety and all importers have strin- bringing in what you say you are,”Moore con- by creating displays with ripe fruit that are eye- gent food safety, rules to follow in order to tinues.“Add to this, a sample of avocados is cut catching; by setting up secondary displays in bring imports into the U.S. Mexican exporters open to make sure there are no fruit flies. The highly trafficked areas; and by showcasing pro- do everything they can to ensure food safety, FDAalsochecksonwhetheraspecificshipper motional cards and recipes that are ideal for something retailers need to educate customers or farm has a good or bad history.” the football season,” says Escobedo. “In addi- about. In fact, retailers should also promote the “Quality and food safety start at the groves tion, we suggest displaying avocados next to fact that avocados have a hardy skin that pro- with the growing and harvesting of Mexican items they partner with in meals and recipes tects them against pests and disease better than avocados,”notes Meyer of West Pak.“Mexican such as tomatoes, onions, lemons and limes. other fruits and vegetables.” avocados that are destined for the United States This reminds customers to purchase these In fact, safety requirements begin in Mexico can only come from groves in the state of Mi- items and provides a beautiful color contrast before any avocados even make it to the border. choacán that have been certified by both the as well. And don’t forget the power of sugges- “A lot of steps happen to guarantee safety,” Mexican and U.S. governments. The growing, tion! Try displaying avocados with pre-cut veg- maintains FPAA’s Moore. “First of all, growers harvesting and packing of the avocados are etables and platters, as well as chips and beer.” and importers are working with customs in closely monitored. Once at the U.S. border, “At our stores, we promote Taco Night,” Mexico who have their own safety, quality, Mexicanavocadosmustpassthroughboth says Kramm of Supervalu. “Customers can growing and packaging requirements. Plus, Mexican and U.S. Customs before being al- tear off the recipes from a POS pad and avo- many retailers have their own auditing systems lowedtoenterthecountry.” cados are one of the ingredients. We post this or third-party auditors who visit the farms to “To ensure maximum quality, producers recipe pad where the avocados and tomatoes ensure they are implementing safety practices. and packers of Avocados from Mexico adhere are displayed.” pb

NOVEMBER 2010 • PRODUCE BUSINESS 49 Independent markets are in touch with their PHOTO ABOVE COURTESY OF WESTBORN MARKETS. PHOTO AT RIGHT COURTESY OF ASSOCIATED FOOD STORES. consumers and can easily cater to their desires. The Rise Of Independents And The Resurgence Of The American Dream

Fresh produce sales climb as independent markets grow. BY BARBARA ROBISON

he Mom & Pop independent stores entire market is usually deeply involved in recently seen opportunities to service the of yesterday have been transformed community activities.” ethnic communities they know well. They are into the specialty and ethnic mar- “Ourcustomershavebeenshoppingwith often seeking the American dream of owning a kets of today. Along with the us for years,” says Dino Mandarino, store and businessandsupportingtheirfamilyamong T changes have come growth, diver- produce manager for Scott’s Corner Market, in friends in familiar neighborhoods. sity and increased sales of fresh produce. Some Pound Ridge, NY. “We see them every week One locale where ethnic markets have really of the markets have been in business for years, and when they don’t come in, it’s usually taken hold is the greater Los Angeles area. but whether upscale or price-oriented, images because they are on vacation.” “Most started out in the inner city when rea- have changed with the times. Other markets “The independents are really nimble,”adds sonable real estate became available as major are newer and many cater to particular ethnic Karen Caplan, president and CEO of Frieda’s chains closed non-performing markets,”points groups, organic or natural food shoppers. Inc., headquartered in Los Alamitos, CA.“They out Dick Spezzano, president of Spezzano Niche marketing has become the name of the react quickly to take advantage of short seasons Consulting Services Inc., located in Monrovia, game. The individual market stories may differ, or over-supplies. With corporate chains, there CA.“Realtors were willing to offer good prices but even those that started years ago began by is a lot of paper work and sometimes buying because they needed the foot traffic that food owning a piece of the American dream. decisions can take up to five weeks.” markets create in neighborhood areas. The “The independents seem to have a different center of Los Angeles has become saturated, culture,” points out Ed Odron, owner of Pro- Ethnic Independent and independent markets are now competing duce Marketing Consulting, based in Stockton, Markets On The Rise with each other, not just the major chains. CA. “They pick the right neighborhoods and The ethnic markets have created excitement Now, we are seeing movement into the outly- know their customers. They want them to feel in many parts of the country. Some have been ing areas, and some markets are even ‘ground- welcome and happy, and have an enjoyable in the independent market business for years, up’ ones, where owners build their own shopping experience. The employees are created by demands from consumers in a buildings. We’ve been moving into phase two, friendly and seem to enjoy their jobs. The strong ethnic neighborhood. Others have more with ethnic markets, especially Hispanic, oper-

50 PRODUCE BUSINESS • NOVEMBER 2010 ihNrak AbsdCptlCt ri Co. Fruit City Capital IA-based Norwalk, with PA. Pittsburgh, in distributor produce fresh a Pittsburgh, talk of Inc. Co. Produce areas Consumers of other president Siger, Alan independents about,”says of growth this in job good a marketthatwe’venotseenthetremendous such do stores the chain but local course, of changes, some had “We’ve markets. independent the of growth the enced items.” unusual more the for oriented price- point are we or items, staple and on pricing pallet volume through aggressive more we so become price-based, generally are they but duce, pro- quality professional want markets a The buyer. providing Hispanic and week, every Hispanic ad specialized a producing by eth- group particular nic one assist to try “We floral. and produce of director Vaughn, A. Leigh contends chains,” the and independents experience the an between is gap there found we’ve but build- — new ings building or space — existing aggressive finding are “They markets. big ethnic a in seen rise has and supermarkets retail owned independently of hundreds services UT, City, diversity. and size in like numbers, increasing are developed they but have Angeles, Los all in those not mar- may ethnic of They growth kets. large a seeing also are items.” bakery and produce special purchas- ing markets, the in non- shopping More are customers. ethnics of Phase crossover markets. a 40 is as three many as even five, ating HT OREYO ETONMARKETS WESTBORN OF COURTESY PHOTO rna oio he prtn officer operating chief Comito, Brendan experi- have country the of areas all Not Lake Salt in Inc., Stores Food Associated country the throughout areas urban Other OEBR2010 NOVEMBER RDC BUSINESS PRODUCE • 51

Reader Service # 52 company finds certain varieties of mangos, okra, Tinda squash, Indian eggplant, chiles and bitter melon are popular with its customers.

Ethnic Independents Go Their Own Way A notable difference between the ethnic inde- pendents and the large chains is the methods they use to reach customers.“Youdon’t see many ads from ethnic markets,”says Odron of Produce Marketing & Consulting. “They have a lot of in-house flyers, and large signs in the markets draw attention to produce specials. They also depend on word of mouth, plus participation in local activities to draw in customers.” “Many of them work through their local PHOTO COURTESY OF WESTBORN MARKETS churches,”adds Spezzano.“If the priest or min- ister mentions the market as a church sup- “In Los Angeles, a major chain might do 10 to porter, that can have a strong effect on bringing in shoppers.” 12 percent of store sales in produce. Independent Labor is, of course, a major cost factor in markets are doing up to 30 percent of store sales operating any retail food market. Many of the ethnic markets hire family members or people in produce. The impact of 40 independent stores’ in the neighborhood who speak the language sales in produce is equivalent to the volume done and dress like the customers. “There’s often a big difference in wages because most of the by 100 stores of a major chain.” markets are non-union,” reports Spezzano. — Dick Spezzano, Spezzano Consulting Services Inc. “Fringe benefits are an added cost over and above wages in union contracts.” Inc., reports the major chains in his area have says William Vogel, president and CEO of The types of items the ethnic markets pur- kept their real estate. “There are not many Tavilla Sales Co. of Los Angeles, based in Los chase are also different from the large chains. avenues for independents to come in here,”he Angeles, CA. “It reminds me of the 70s when “Our ethnic customers purchase garbanzo says.“Thereareafewandtheydoagoodjob, our market had primarily smaller regional beans in the shell, date varieties and melons in but basically we don’t see the growth they have chains. The ethnic markets require good qual- season,”says Caplan of Frieda’s.“The chains are in Chicago and Indiana, for instance,”he adds. ity, up-to-the-minute service, and a price-con- more interested in the specialty items we carry.” scious attitude. They will often take smaller Odron points out that many of the ethnic Produce Wholesalers And sizes and those sales are great for our Mexican markets operate under the radar. They are not Distributors See Volume Increases growers who have entire crops to sell.” The big joiners of groups and don’t sit on boards One of the big pluses for produce whole- company’s ethnic market customers use more of big organizations. The Fresh Produce & Flo- salers and distributors in markets with inde- tropical fruits per capita and they know the dif- ral Council (FPFC), in La Mirada, CA, which pendent growth is produce volume. “In Los ference in the fruit varieties. For example, there serves the produce industry in both Southern Angeles, a major chain might do 10 to 12 per- is a lot of new interest in the malanga,aroot and Northern California, is aware of this and is cent of store sales in produce,”estimates Spez- vegetablerelatedtothetaro, he adds. establishing a task force to study how the FPFC zano of Spezzano Consulting Services. Samra Produce & Farms Inc., in Los Ange- can be of greater assistance to independent “Independent markets are doing up to 30 per- les, CA, has been servicing the Indian inde- markets. The FPFC identified them as a growth cent of store sales in produce. The impact of pendentmarketsforabout20years.“Today, section extremely important to the wholesalers 40 independent stores’ sales in produce is there are 50 to 60 Indian markets in Los Ange- and distributors in California. “We recognize equivalent to the volume done by 100 stores of les,” reveals president Harbhajan Singh. There the independent markets can’t usually take the a major chain.” are much bigger markets in San Francisco, New time to attend our meetings and social events, “We love what’s happening to our business,” York, Toronto, Vancouver and Chicago.” The yet they may not have access to market research data and other things FPFC provides to its members,” says president Carissa Mace. The annualProduceExpohasbeenadrawingcard FLORAL CAN ADD TO INDEPENDENTS’ PROFITS for the independents.“The event is free to mar- ssociated Food Stores Inc., based in includes instructions in business manage- ket staffs and this year, we kept the exhibits Salt Lake City, UT, provides another ment,imagebuildersforfloral,aswellas open later to accommodate them. It was suc- Aservice for independents by con- guidelines on how to do arrangements. It is cessful and we plan to do it again next year,” Side Note ducting a floral training seminar, available often overlooked, but floral can help an Mace adds. to market staff members. The seminar independent market build profits. pb Some markets are undergoing changes in the ethnic groups they service. Ten years ago,

52 PRODUCE BUSINESS • NOVEMBER 2010 ket provides two full-time employees at the “The ethnic markets require good quality, scales to weigh produce for customers, which up-to-the-minute service, and a price-conscious cuts waiting time when checking out. Another upscale market that stocks many attitude. They will often take smaller sizes and organics is Dorothy Lane Market, with three those sales are great for our Mexican growers stores in the Dayton, OH, area.“About 10 per- cent of our produce sales is natural and organic who have entire crops to sell.” and our department has been certified organic — William Vogel, Tavilla Sales Co. by a third-party,” reports José Manzano, pro- duce director. “We also feature some locally the 20-year old Chan’s Market in Pasadena, farmer’s market, which has been very success- grown produce in season, such as Ohio apples CA, had a customer base that was almost 100 ful.” For additional customer service, the mar- and winter squash.” percent African American.“We sold 20 cases of greens a week, but today that has been cut almost in half, as a result of the economy and the fact that many of my current customers are seniors,” notes owner Peter Young Yoo. “The younger African Americans are moving out of the city and we are getting more Latino cus- tomers. I am buying a few different produce items and plan to slowly add more as my cus- tomer base changes.” From Korea, Yoo enjoys being the owner of a small neighborhood mar- ket where he knows his customers and what their preferences are. They may not be strictly ethnic markets, but other markets are adding produce items to appeal to particular ethnic groups.“We’re try- ing to build our Asian section and I started car- rying dragon fruit,” reports produce manager Tony Moore at Babbs Super Valu, in Spencer, IN. “Now, customers are even coming from Bloomington to buy our dragon fruit and other Asian produce items. We try to satisfy all our customers and like having more leeway to do our own buying and setting up our own displays. We can take a display down quickly if a good deal comes along we want to promote. Our customers love the locally grown produce in season.”

Organics And Locally Grown Place Prominently Not all independents are ethnic-based. Many are upscale markets in affluent areas, or feature organic and natural foods. One such market is Sunset Food Mart Inc., in Highland Park,IL,whichwillsoonopenitsfifthneigh- borhood market in January, 2011, after 73 years in business. “We believe that quality and service go hand-in-hand,”asserts produce and floral director Vince Mastromauro.“The mar- ket has a big variety of value-priced quality produce. We don’t bring in hot buys. We’ve been handling organics since the 1990s, work- ing with Goodness Greeness, an organic dis- tributor in Chicago. We use a lot of locally grown vegetables such as corn, squash and tomatoes. Every week in August we hold a Reader Service # 54

NOVEMBER 2010 • PRODUCE BUSINESS 53 A strong Detroit produce terminal has helped Westborn Market, based in Berkley, MI, “We try to satisfy all our customers and like with three upscale markets, continue to be a leader in the fresh fruit and vegetable category, having more leeway to do our own buying and according to president Mark Anusbigian.“It’s a setting up our own displays. We can take a display wonderful advantage for us because we are in the terminal five days a week and can see, taste down quickly if a good deal comes along we want and smell the produce items rather than buy- to promote. Our customers love the locally grown ing over the phone,” he explains. “It helps us remain strong by keeping the quality our cus- produce in season.” tomers rely on.” He admits that price is play- — Tony Moore, Babbs Super Valu ing a bigger role than ever, even for an upscale

market.“We are tightening our margins to try to remain competitive, but still maintain our quality and service.”

Community Events Count Westborn Market, originally a corner fruit stand, has developed into an international marketplace over the years. It is a big supporter of local farmers and local community activi- ties. Anusbigian serves on the board of “For- gotten Harvest,” a Detroit area mobile food rescue program. Every year, the market spon- sors a Champagne Cruise in its parking lot, to benefit “Forgotten Harvest.” The upscale Scott’s Corner Market ties in with a local car show, which pays tribute to the police, and works with the Lions Club on their Pumpkin Patch promotion. “The club plants pumpkins just 30 yards from our store and because they don’t grow enough to meet the sales demand, we supply additional pumpkins needed and help them with their sale,” says Mandarino. Locally grown produce items are promoted in the market and it is looking to handle more organic produce for customers. “We try to feature locally and regionally grown produce as much as possible,”says Koby Peterson, produce manager at Ed’s IGA super- market, based in Snowflake, AZ. “Our cus- tomers love the tomatoes we get from nearby Wilcox, Arizona.” FelicityIGA,asmallruralmarketinFelic- ity, OH, is more a “bread-and-butter store,”as co-owner Rose Reifenberger describes it. “We offer some organics and specialty items, but the reception has not been good,” she admits. “There isn’t a lot of locally grown produce in our immediate area, so it’s not economical for us to feature it. We do make our own salsa and fresh fruit cups, which are popular.” “We’re seeing a dramatic increase in organic sales and currently carry 150 items,” reports Vaughn of Associated Food Stores. “Our private label is Natural Directions, which is packaged by Western Family, a cooperative in Portland, Oregon.” pb Reader Service # 45

54 PRODUCE BUSINESS • NOVEMBER 2010 WINTER MERCHANDISING

Focusing on upcoming events, such as Super Bowl and the PHOTO ABOVE COURTESY OF SUNFLOWER MARKETS PHOTO AT RIGHT COURTESY OF SAN MIGUEL PRODUCE Chinese New Year, is a profitable way to merchandise the Hot Strategies For department. Winter Merchandising

Bring in consumers from the cold with hot deals and displays in the produce department. BY CAROL BAREUTHER, RD

he winter season doesn’t necessitate eight days and eight nights with many cus- jellies for a breakfast theme. Also, promote acompleteresetintheproduce tomary dishes served. Robert Schueller, direc- juice oranges for holiday Mimosas by cross- department such as the ones that tor of public relations at Melissa’s/World merchandising bottles of champagne nearby.” happen at Memorial Day to meet Variety Produce Inc., in Los Angeles, CA, says, Tradition is giving way to trendy when it T summer or Labor Day to launch “Ingredients for traditional dishes include comes to the Christmas meal, reports Caplan. into fall. Yet, savvy retailers do have a clear potatoes for latkes, onions, horseradish, leeks, “Consumers today are not afraid to try new focus of what they need to achieve in their pro- wild rice, grains, spices, herbs and dried fruits.” ingredients. This means retailers have an duce department to catch the attention of shiv- opportunity to market less common items. For ering shoppers during these months. CHRISTMAS & NEW YEAR’S: example, Brussels sprouts are popular now, as Karen Caplan, president and CEO of December 25, 2010, January 1 are fingerling potatoes.” Frieda’s Inc., in Los Alamitos, CA, explains it “Christmas displays should be colorful and Christmas is the ideal holiday to sell all vari- this way: “Right after Halloween, there’s a big festive and filled with plenty of products,” eties of potatoes, adds Randy Shell, vice presi- holiday focus in the lead up to Christmas. Schueller asserts. “Dried fruits and nuts for dent of marketing for RPE Inc., in Bancroft, Then comes January, and the mindset is on fruitcakes are always popular. Don’t forget the WI. “I recommend a two-tier approach. For New Year’s resolutions and healthful eating. fancy vegetables, too. Then for New Year’s, offer example, offer a 10-lb. bag or russets for the 1 1 This is a big time to promote fruits and veg- a full variety of snack foods. Also, it’s said that family dinner table and a 1 ⁄2 to 2 ⁄2 -lb. bag of etables and take advantage of all the counter- eating black-eyed peas brings prosperity in the fingerlings or specialty potatoes for those who seasonal produce that’s available right into year ahead,” so be sure to have those in stock are entertaining or having holiday parties.” spring such as grapes, nectarines and berries.” as well. Randy Boushey, president of A&L Potato Fresh citrus offers customers a great way to Co. Inc., in East Grand Forks, MN, maintains, HANUKKAH: balance holiday over-eating, says Paula “Red A-size potatoes are becoming more and December 1-9, 2010 Fouchek, marketing director for the Edinburg more popular for mashed potatoes.” Known as The Festival of Lights and cele- Citrus Association, in Edinburg, TX.“Retailers “Beyond mashed potatoes, shoppers are brated by those of the Jewish faith, Hanukkah can tie into Christmas by cross-merchandising looking for new ways to prepare potatoes,” is a joyful family-oriented holiday that lasts citrus with coffee cakes, muffins, croissants and acknowledges Kendra Mills, marketing man-

NOVEMBER 2010 • PRODUCE BUSINESS 55 ieNote Side PUBLIX SHOWCASE WINTER CITRUS itrus, especially Florida citrus, is fea- tured throughout the winter season Cat Publix Supermarkets, in Lakeland, FL. Maria Brous, director of media and com- munity relations, says, “Florida citrus is prominently merchandised throughout the produce department as a seasonal callout to our customers. Citrus is one of those items that sells itself. However, point-of- purchase material is always a good source of additional information for our shoppers.” A sampling of the variety of citrus that Publix carries during the season includes grapefruit, tangerines, Navel oranges, juice oranges, Pummelos, Temple oranges, Tan- gelos and Kumquats. Brous says, “We fre- quently advertise a number of varieties throughout the citrus season, including in our At Season’s Peak program, which is We’ve grown accustomed to year-around intended to remind customers of the sea produce and often forget the true sea- sonality of the fruits and growing seasons. sonality of produce items.” pb

ager for the Prince Edward Island Potato late PEI Potato Cake, where potatoes replace Board, in Charlottetown, PEI, “For example, some of the oil, and Soda Bread that incorpo- our two most popular recipes are for a Choco- rates leftover mashed potatoes.” Reader Service # 34 Reader Service # 26 Reader Service # 21

56 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 6 ewr L,sy,“ayrtiesfe a feel retailers “Many says, LLC, Network Cranberry WI-based Rapids, Wisconsin of the partner principal Johnston, Blake staple. holidays. the for that well box sells 10-lb. a offers Garber However, pop- ular. most are sales sales.”Bulk potato sweet holidaysfor big three the are Easter and Garber Christmas at emphasizes,“Thanksgiving, LA, Iota, in Farms, owner/partner Garber, Wayne table. dinner Christmas the for demand strong anyway.” time dur- this potatoes ing buy to tend Shoppers isn’t percent needed. 70 percent to 15 50 but to effective, 10 is discount a offers that “Promo- pricing ID. tional Eagle, in Potato Idaho (IPC), the Commission for retail of Pemsler, president Seth vice adds holidays, the during toes potatoes.” of display decimated a find produce and a aisle into come to than evening the who in customers shop extra for the worse handle is Nothing to business. order in Christmas to Forks, up leading week last Grand the Growers in “especially East Potato Association, Plains the Northern for MN-based director tions communica- and marketing Kreis, Ted mends 58 Reader Service # 25 rnere r nte hita menu Christmas another are Cranberries in are potatoes sweet potatoes, white Like Deepdiscountsarenotnecessaryforpota- displays,”recom- potato of size the “Increase RDC UIES• BUSINESS PRODUCE OEBR2010 NOVEMBER fesaPa onsporm hc ik,pres- Sinks, Chuck Points’program. Pear a LLC,offers Co. Fruit Sage WA-based Yakima, pears, Seckel, Comice, Concordes. and as Forelle such varieties specialty more the including December, in pears available are of varieties “All Mil- reminds, in OR, waukie, (PBN), Northwest Bureau Pear the pears. and citrus apples, as such fruits of baskets gift for opportunities presents This Facts. Packaged publisher, percent research market by 9 a to representing according increase, 2009, $18 to in 2007 in United billion billion the $16 from in grew gift-giving States food for market candle.” a with bowl them punch a them in floating stringing or ornament tree a cranberries, for together fresh decorate with also people Many sauce. the expected to addition in smoothies, pan- fruit breads, and in cakes used be also fresh can that cranberries customers to suggest to materials POS “Use adds, Easter.” He until cranberries through theNewYear.Twentyto30yearsago,wehad cranberries fresh of assure supplies and good category the rebuild to is However, goal our impossible. is supply December oecuaepouemngr opromote to managers produce encourage To for marketing of director James, Dennis total the fact, In rise. the on is gifting Food odGfigi h U.S., the in Gifting Food h ubro onste collect.” they points of number the on depending prizes win to eligible are managers a‘3.’Produce have varieties specialty varieties Mainline a‘1’and have pears. of box each put in “We explains, stickers marketing, and sales of ident UFOE MARKETS SUNFLOWER AT TOUCHDOWN A SCORE SALES AVOCADO CHILEAN A ipasta elywn bv and above expectations.” went our beyond really eye-catching that some displays each building to due location a sales as in increase back percent came 21 per- result actual 15 The by cent. sales avocado says, increase same-store to Schuette challenged were Bowl. stores “The Super con- for sales test CAIA-sponsored a in pated center. the rib- down a right running as red display of the bon tomatoes of rest while the up shopping, made of right ease to left for positioned fruit ripe different of with levels three- area, display up the of made fourths of Avocados amount traffic. highest foot the faced that end on caps placed was fruit produce The the department. in located was display mary and plates. onions paper even tomatoes, and jalapenos, as produce chips, such beer, items of addition the thanks size to this the triple while was display area overall 4x4-ft. a avo- occupied Here, cados entrance. store’s the at lobby cross-merchandised grocery.” from chips strips tortilla clip by and attached of mix packets guacamole dry of with two back-to-back put these we themed and shippers provided Importers cardboard (CAIA) Avocado Chilean Association regis- cash The the ters. by up 4x4-ft. or displays 3x3-ft. satellite the were sales for impulse location best “The locations. remarks, three Schuette in avocados of tailgating-themed displays and stores football the created months, three for continuing football.” as sports around such revolve that themes on capital- ize “we manager, Schuette, category Scott produce says, boost more,” “To even CO. sales Boulder, in based chain atwne,to h hi partici- chain the too, winter, Last pri- and third the importantly, Most the in built was display largest The and October in starting season, Last ufoe akt 33-store a at Market, departments Sunflower produce the best-seller in 2 No. the are vocados

pb ieNote Side Reader Service # 66 Side Note eray3 2011 3, February YEAR: NEW CHINESE 2011 February, and January WINTER: IN SUMMER ecm h ero h abt Melissa’s rabbit. the of year the welcome winter. the during Chile from imported also are avocados and berries Chilean Cherries, season. the for $0.37 to compared $2.81 sea- is domestic son the during fruit stone for diture expen- December per-capita the Similarly, for April. through $2.88 to compared $4.81 was expen- diturefortablegrapesfromMaytoNovember per-capita the example, For sales. fruit Chilean for are opportunities market there considerable CFFA, the for September in released com- disadvantages.” and has advantages methods pelling these of Each promote. down to the died of has competition third the last all when the season until waits group yet third and promote, a then and harvest the the for of wait peak others while in, comes it as fruit soon Chilean promote as to first the be to want ers retail- “Some (CFFA). Association Fruit Chilean Fresh the for North director managing CA-based American Sonoma, the Tom reports Tjerandsen, January, is season fruit Chilean 60 AKTBASKET MOULAS MARKET DE AT PROMOTED TRAYS PARTY HOLIDAY A n it, asMaguire. parties says holiday gifts,” and both are for popular trays very produce-filled festive department. the produce “The at the to to them entrance up displays leading and week Christmas the sev- in makes ahead store eral the demand, high due However, to Christmas. weeks to the up The leading in pears. made-to-order and are apples trays as such fruits tra- — a It’s ditionwe’vedoneforthepast30years.” in-store sizes. large trays and medium the small, MA, make Tewksbury, “We in says, based 62- chain Mike the store for produce Christmas. of director Maguire, between and weeks the Thanksgiving Moulas in De Basket at Market shoppers for chandised hstaiinlCieeclbainwill celebration Chinese traditional This data Group Perishables to According the of start the for window traditional The RDC UIES• BUSINESS PRODUCE ri ry ilfaueseasonal feature will trays Fruit u-ildprytaswr mer- were and trays party vegetable- nut-filled fruit-, of types selectionof10to12different OEBR2010 NOVEMBER pb AsiangreenssuchasBokChoy, also but tradi- greens, to leafy Western/American only tional not applies in “This located CA. Inc., Oxnard, Produce Miguel San for ment develop- business and marketing vice of Berk, president Jan details foods,” health and foods cus- these to holiday.” selling this for best tomers the year- do customers will Chinese round their to cater who wrappers.” won-ton and wrappers such eggroll as items value-added and citrus hand dha’s pears, Korean peas, snap sugar cabbage, Napa choy, bok baby daikon, ginger, as such produce Asian advises,“Promote Schueller eemsadgreens), mustard nese Reader Service # 76 “Greensfallintotwocategories:comfort “Retailers Caplan, Frieda’s to According a Lan Gai r blancos,Bud-oro CieeBroc- (Chinese a Choy Gai (Chi- eray6 2011 6, February XLV: BOWL SUPER Chinese Year. for New Greens Asian traditional fea- turing recipes with (IRCs) coupons redeemable instant offer will Produce Miguel San year, This and coli) n hnete rmt artsrd,coins shreds, carrot promote either then and baby 1-lb. carrotsfor20-to30-centsofftheregularprice, the promote day, game In to up snacking. run healthier the for trend the by all driven Bowl, Super to Thanksgiving from carrot are baby sales for year the of says, time for strongest CA, “The marketing Bakersfield, in of Farms, Grimmway president vice Gruszka, Reader Service # 48 Reader Service # 65 ohn assakn ieSprBw.Phil Bowl. Super like snacking says Nothing a Miu Dau So e shoots/tendrils).” Pea (Snow n hnete rmt artsrd,cisand coins shreds, carrot promote either then and rvnb h rn o elhe ncig nthe In snacking. healthier for trend the by driven Tesrnettm fteyear the of time strongest “The ae r rmTakgvn oSprBw,all Bowl, Super to Thanksgiving from are sales art o 0t 0cnsofterglrprice, regular the off 30-cents 20-to for carrots hp o 0 o2-et f h eua price... regular the off 20-cents to 10- for chips u pt aedy rmt h -b baby 1-lb. the promote day, game to up run nodrt aniceetlsales.” incremental gain to order in hlGuza iepeieto aktn o rmwyFarms Grimmway for marketing of president vice Gruszka, Phil —

Reader Service # 41 o aycarrot baby for Teesmr ossetvlmso avocados of volumes consistent more “There’s says, (CAC), Irvine-based Commission Avocado the California for vice marketing Delyser, of Jan alone. president Bowl Super for sold were avocados of pounds million 65.3 2010, In guacamole.” making for avocados and fixings beer, salsa other to with tomatoes next limes key “cross-merchandise skins.” potato ing mak- in use for potatoes “Promote ommends, rec- ID, Falls, Idaho in LLC, Produce Potandon sales.” incremental gain to the order to in babies next 1-lb. items regular these the display simply off or 20-cents price to 10- for chips and vcdsaeahg elrfrSprBowl. Super for seller huge a are Avocados Schueller, Melissa’s says addition,” “In for sales of president vice Jr., Thomas, Dick OEBR2010 NOVEMBER RDC BUSINESS PRODUCE • 61

Reader Service # 18 nohraeso h onr.Hueodpene- Household country. the of grow areas to other room in is there West, the in percent 70 is avocados of penetration household Although minds. consumers’ in them keep to Bowl to Super prior week the avocados says,“Demo Bezart displays.” secondary their customize allows to bin retailers The avocados. for usages tailgating promotes our other promotes the and bin Club the Lover’s Avocado of side Maggie “One says, Game. tor, direc- marketing the CA-based Aptos, for the Bezart, Some the Grab under season theme this bin new a offers (CAIA) promoting.” in confidence have can retailer so winter, early the in sources multiple and year-round, available 62 Reader Service # 59 TheCAIAalsooffersretailersademokit. Association Importers Avocado Chilean The RDC UIES• BUSINESS PRODUCE OEBR2010 NOVEMBER aobyn utmri odoet entice store. to in one good a is customer cado-buying avocadoeswerepurchased,it’scleartheavo- avoca-doswerenotinthebasketandspent$66when when occasion shopping per $39 spent Homescan, consumer buying avocado Nielsen the reported by which published in data percent Combine this guacamole. 45 than and other appetizers sandwiches; on cados centeatthefruitbyitself;58percentuseavo- consumers useavocadosasaningredientinsalads;62per- of percent 73 that revealed Board Avocado (HAB) Hass CA-based Irvine, the by the in percent 28 and Northeast.” Midwest the per- in 31 South, cent the in percent 36 only is tration eodgaaoe 09Takn Study Tracking 2009 a guacamole, Beyond eray1,2011 14, February DAY: VALENTINE’S Reader Service # 43 partners. for retail customize their and provide can shippers that Lady designs Pink poster years.” Valentine-theme offers five America past the for Day Valen-tine’s for apples Lady Pink bagged promoted successfully have stores “Wal-Mart says, WA, Yakima, in headquartered LLC, America Lady Pink of bags tote apples.” promote Lady to time good a fruit.” passion strawberries, and pineapples as baby papayas, such fruits fresh “Promote suggests, Schueller Melissa’s meal. romantic lnTyo,mreigdrco o Pink for director marketing Taylor, Alan is “it Sinks, Fruit’s Sage says addition,” “In a for ingredients the customers Offer pb Reader Service # 47 Reader Service # 42 Reader Service # 79

NOVEMBER 2010 • PRODUCE BUSINESS 63 Refrigerated space is at a premium for juices, thanks to the image boost they receive from being displayed in the produce department. Juicing Up The Produce Department

The lure of healthful fresh juices leads consumers and competitors deeper into the produce department. BY PAULA HENDRICKSON

en years ago, finding bottled juice in the beginning, we were the only juice allowed Rotell, national sales manager of Noble Juice. the produce department was rare, in the produce department,” says Marygrace “With a fresh product, time is of the essence.” but today it’s common to find fresh Sexton, CEO of Orchid Island Juice Co., in Fort In 2002, POM Wonderful was perhaps the orange, tangerine and pomegranate Pierce,FL.“Thatwasbecausetheydidn’tallow first brand to hit the national scene.“They did T juices alongside the fresh fruits and anything in produce that had more than a 30- not offer it to the dairy departments because it vegetables.Viewed as a liquid form of produce, day shelf life.” Because the company’s fresh- was a produce item, and juice in produce de- it makes sense that these juices wound up in squeezed orange and grapefruit juices have a partments evolved from there,” says Mike produce instead of other refrigerated cases. 17-day shelf life, it made the cut. Maguire, director of produce for DeMoulas The connection between juice and produce Finding retailers that are able to properly Market Basket, a 65-store chain based in isn’t new. Long before bottled blends hit the handle fresh beverages was an initial road- Tewksbury, MA. “With all the press about an- shelves, some retailers made fresh juices on site. block. “Cold chain integrity didn’t become re- tioxidants, Açai juices and blueberry juices, it “We used to have great big machines to squeeze ally sophisticated until bagged salads came out became a natural fit.” your own orange juice, grapefruit juice, carrot in the late ‘90s,”says John Martinelli, executive “Wedon’tviewourselvesasajuicecom- juice and apple juice,” says Doug Riley, assis- vice president of Orchid Island. “Before that, pany,” muses Matthew Tupper, president of tant vice president of produce operations for juice was normally found on an ice table in the POM Wonderful LLC, located in Los Angeles, Hy-Vee Inc., headquartered in West Des middle of the produce aisle and usually had a CA. “We’re pomegranate farmers. That’s the Moines, IA. Riley says the trend began about three- to five-day shelf life.” fruit we grow and are most interested in. We 30 years ago and lasted until the mid-to-late Due to refrigerated shipping costs, many wanted to offer the nutrition of this great pro- ‘90s, when bottled fresh juices became more fresh juice companies start locally, like Noble duce item on a year-round basis, so it was very accessible.“Thathelpedpropelusintostocking Juice Co., which launched in 1996 and is now naturalforustobeinproduce.” some of the juices that came along, since our availableinmorethanadozenstatesfromits Likewise, when produce giant Bolthouse shoppers were accustomed to coming into Hy- home base in Winter Haven, FL. “The East Farms joined the fresh beverage market in Vee and buying fresh juices.” Coast has been a really strong market for us, so 2003, it targeted produce departments. “Ulti- Orchid Island was one of the first fresh juice now we’re trying to find the right logistics to mately, we are not simply a marketing com- brands to hit the market two decades ago. “In make it cost-effective to ship out West,”says Lou pany, but a farming company that specializes

64 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 50 “We don’t try to limit the number of varieties. We carry all the SKUs of any given company’s brand, then let the stores decide which ones to carry. Depending on space, they’ll carry as many as they can. But we do try to stay away from shelf-stable juices.” — Doug Riley, Hy-Vee Inc.

in producing healthy snacks and beverages,” duce.“Manyofthejuicesdoliveuptothose says Bryan Reese, chief marketing and innova- standards, but unfortunately, that is not always tion officer at Bolthouse Farms Inc., in Bakers- the case,”he discloses. field, CA. “One of my complaints is when companies try to sell their juices in produce when it’s not Limited Space, Limitless Competition actually fresh juice — it’s a hot pack product Increased consumer interest in antioxidant- that has maybe a year-and-a-half shelf life and rich beverages has spurred competition from doesn’t have to be refrigerated,” complains small-to-mid-sized juice companies and large Allyn Brown, owner of Connecticut Currant bottlers alike. With more brands battling for and Maple Lane Farms in Preston, CT. “Why limited cooler space, suppliers vie for inclusion waste valuable cooler space that should be as retailers struggle to find room to stock more saved for actual, refrigerated juices?” brands. “The biggest challenge is finding the Orchid Island’s Martinelli calls those shelf- space — especially refrigerated space, which is stable products “industrial strength juices.”He at a premium,” Hy-Vee’s Riley says. Some Hy- says many such juices are eager to move into Vee stores include Health Markets, providing produce to bolster brand images. “What they an additional outlet for fresh juices. recognized is it all has to do with marketing. “We don’t try to limit the number of vari- They realized they could increase their margins eties,” Riley adds.“We carry all the SKUs of any with that fresh, nutritious perception.” given company’s brand, then let the stores de- “We think the hurdle should be very high cide which ones to carry. Depending on space, for quality, composition and nutrition of juices they’ll carry as many as they can. But we do try that are merchandised in produce, because to stay away from shelf-stable juices.” after all, that’s the nutritious bounty of the Market Basket carries five different juice store they’re sitting with,”Tupper says. lines, including Bolthouse, Odwalla, and POM Wonderful, and routinely test markets other Promotional Opportunities brands, allowing consumer reaction to decide Suppliers agree that helping consumers dis- what the company restocks.“Before, we could- tinguish between fresh and shelf-stable juices n’t even carry these juices,” Maguire says. The is crucial — and can be turned into a promo- introduction of multi-deck cases has opened up tional opportunity. “You can go into the gro- a little more space.“We’ve now renovated most cery store and see the word ‘fresh’ on some ofourstorestomulti-deckcasessotheycan industrial strength juice jugs more times than handle juices they never had room for before.” you see it on our fresh-squeezed orange juice,” One advantage of apple cider, unlike other Martinelli says. fresh beverages, is it doesn’t require refrigera- “They use terms like ‘Tastes like fresh- tion, which is helpful considering it often squeezed,’”Orchid Island’s Sexton says, adding, comes in gallon jugs.“A commodity like apple “Citrus juice is the last bastion of fresh-squeezed cider is usually stacked on the floor around Oc- juice in America for inter-state commerce. You tober and November,” says Paul Kusche, vice can make fresh-squeezed strawberry juice or president of marketing and innovation at Lite- whatever you choose and sell it at a juice stand or house Inc., based in Sandpoint, ID. Since it a stand-alone store, but for mass-distribution doesn’t take cooler space away from year- across state lines — by law — all juices other round products, more stores can carry it. than citrus must be pasteurized.” Fresh juices may command premium Flash pasteurization is the process compa- prices, but they also benefit from the direct as- nies like Orchid Island, Connecticut Currant, sociation with produce. POM Wonderful’s POM Wonderful, Noble, Litehouse and Bolt- Tupper maintains all juices sold in the produce house use. It’s far gentler than hot-pack pro- department should uphold the standards of cessing and thus, used by many large freshness and nutrition inherent in the pro- commercial juice makers. In flash pasteuriza- Reader Service # 71

66 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 4 tion, juice is rapidly heated and then quickly cooled, which kills any harmful microorgan- “The challenge is educating the consumer isms without destroying the vitamins, enzymes about what is pure, natural and fresh, or the overall freshness. Most flash-pasteurized beverages still require refrigeration; some, like and how indiscriminately some Litehouse ciders, do not. companies use those terms.” “The challenge is educating the consumer — Marygrace Sexton, Orchid Island Juice Co. about what is pure, natural and fresh, and how indiscriminately some companies use those riety of apple is used to make that specific cider, number of premium juices, they emphasize terms,”Sexton says. and merchandising the cider with apples draws that making additional space for fresh juices is Just as POM Wonderful initially had to ed- attention to both products. “We developed worthwhile.“From the stores’ perspective, with ucate consumers on the health benefits of strategies to build a Gala display, work that shelf-stable product they’re looking at less pomegranate juice, Connecticut Currant, down, replenish it, then replace it with another shrink for the shelf space, but there’s still a which launched five years ago, is spreading the display for Honeycrisp,”Kusche says.“Then do value proposition with [fresh juices],” Noble’s word about the nutritional power of black cur- the same thing to transition out of Honeycrisp Rotellsays.“Youtendtoseeconsumerswith rants, the main ingredient in its Currant Affairs to Fuji.”This gives retailers three separate pro- more disposable income — the gourmet, line. “It’s easier now, but at first, no one knew motional opportunities instead of one. trendy consumer who’s shopping the produce what black currants were,”admits Brown. Connecticut Currant’s Brown maintains aisle — as opposed to someone looking for a According to Sexton, another way to edu- that retailers benefit from highlighting local lower-priced item like those frozen juice tubes cate consumers is to make shelf-life informa- products when possible. “Here in New Eng- you mix with water.” tion more obvious so they’ll know if a product land, we sell our product as the locally grown, “Adequate space is key,”agrees Bolthouse’s is five-days old or 128-days old. “I also really locally bottled juice,” he says. “It’s helped us Reese. “This category thrives on innovation love the idea of a television, or some kind of quite a bit. We’re a new type of juice from a and flavor variety. Consumers expect to have educational information, in the produce de- local manufacturer, so most of the time con- many choices when it comes to flavors and partment talking about the benefits of juice sumers are willing to give us a try.” theirrespectivehealthbenefits.Iftheycan’t and what to look for on a label,”she says. While suppliers understand there isn’t find what they’re looking for, they’ll look else- Litehouse cider labels clearly state which va- enough space to accommodate a growing where to meet their needs.” pb Reader Service # 7

68 PRODUCE BUSINESS • NOVEMBER 2010 REGIONAL MARKET PROFILE

The Atlanta State Farmers’ Market spans PHOTOS COURTESY OF THE GEORGIA DEPARTMENT OF AGRICULTURE 150 acres and more than 50 different kinds The Changing Face of businesses. Of Atlanta’s Produce Market

New languages and demographic groups mean new products and a shifting interest in consumer demands. BY BOB JOHNSON

ust south of the City of Atlanta, the Highway 75, close to Highway 285 and just a market as a place where farmers and urban res- sprawling 150-acre Atlanta State Farmers’ couple miles from Hartsfield-Jackson Atlanta idents can meet and do business.“The market Market shows the many faces of the met- International Airport. has two distinct parts — there is a retailer sec- ropolitan area’s changing produce indus- “You’ve got more than 50 businesses here tion and a wholesaler section,”explains Kulin- Jtry.Onesectionofthemarketisdevoted bringing in food from all over the country and ski.“When it was first built, the retailer section to more than 650 retail stalls, where residents all over the world,” says Nickey Gregory, pres- was the biggest, but now the wholesaler section can shop 364 days of the year for produce from ident and owner of Nickey Gregory Co. LLC, in is doing the most business and the retailer sec- the farms of Georgia and beyond. It is one of Forest Park, GA. We ship up to 750 miles, and tion is a small percentage of the total sales. Of the largest direct marketing produce opera- one or two of the companies ship farther than the produce we keep records of, $430 million tions in the world, and one of the six sheds in that. We are centrally located to the rest of the came from outside Georgia, and $31.6 million this section of the market is reserved exclu- South. We have 150 acres of fresh produce with came from inside Georgia. We’re probably im- sively for Georgia-grown produce. “We have a more than 50 different businesses of all kinds.” porting more from outside the state than we special shed at the Atlanta market with the The Atlanta produce industry is at the hub were before,”he guesses. Georgiaproduceforthepeoplewhowantto of the Southeastern United States and serves Those figures overstate the shift because buy local,”says Arty Schronce, director of pub- markets throughout the region with produce they do not include produce brought in by the lic affairs for the Atlanta-based Georgia De- from Georgia, the South, the rest of the United permanent market tenants, who tend to be partment of Agriculture (GDA). “Less of the States and around the world. “If there is a sin- from Georgia. Nonetheless, there has definitely produceatthemarketissoldtothelocalpop- gle country sending in the most, it would be been a change as the Atlanta State Farmers’ ulation than used to be.” Mexico,” says Matt Kulinski, director of mar- Markethascometobesurroundedbyother Well over a million people come every year kets at the GDA.“The market is close to the air- industrial facilities, while the city’s residents to shop at this retail section. But next to the re- port and many of the specialty wholesalers also have moved to new developments on the other tail section is another, larger section of the At- get a lot of shipments from South America.” side of town.“The development of Atlanta has lanta Farmers’ market devoted to wholesale In recent decades, the role of Atlanta as the affected the market,”maintains Kulinski.“The produce operations that serve the entire South. distribution center for regional produce has Farmers’ Market is south of the city, in an area ThemarketiscentrallylocatedonInterstate come to overshadow the role of this sprawling that has become less residential and more in-

NOVEMBER 2010 • PRODUCE BUSINESS 69 ATLANTA MARKET PROFILE

THE LANGUAGES OF PRODUCE duce retailers in the greater Atlanta area, ac- cording to Joel Robertson, president of The n the modern Atlanta metropolitan area baby Bok Choy, snow peas, broccoli crowns Produce Connection Inc., located in Al- the language of produce is frequently and large green onions. pharetta, GA. “The other chains all went out

Side Note ISpanish ... or Thai, Hmong or Chinese. Nall has found the growing Asian com- of business and went back to where they came Waves of immigrants are reshaping Atlanta munity has increased demand for broccoli, from. Every grocery chain that went out of as large numbers of Hispanics and Asians are citrus and onions.“We don’t deal with a lot of business seems to have followed the same pat- joining longer-term area residents. The food the small specialty items, but I imagine they tern: raise prices, let people go and reduce preferences of the new residents are having are increasing, too,”he says. service,”he says. an impact and showing up alongside the col- The influence of the growing Asian and Even as retail operations are consolidated lards, Vidalia onions and peaches. It’s hard to Hispanic populations is also reflected in in firms with headquarters far away from At- miss Market stalls stocked with tomatillos, shiftsintheproduceneedsoffoodservice lanta, the local managers are still making most Bok Choy and hot peppers. institutions. “Asian-influenced menus uti- of the key decisions, adds Robertson. “The Hispanic community has made a lize a lot of broccoli, Napa cabbages, ginger For consumers, retailers and producers big impact on the produce market,” ac- root, snow peas, peppers, mushrooms and alike, price has become the overriding issue. knowledges Hubert Nall, owner and presi- lettuce, just to name a few,”says Frank Rea- “In the past two years, people have gotten dent of Forest Park, GA-based Hubert H. Nall gin, category manager for seafood and pro- more price-conscious. It hurts when the price Co. Inc., which was founded in 1925 by Nall’s duce at the Atlanta, GA-based division of gets too high, but when the price comes grandfather, Hubert H. Nall Sr.“I think it has U.S. Foodservice-Atlanta, GA. “In fact, down, the stores are running ads and people also influenced the buying habits of the gen- many Asian restaurants are asking more and are running to buy,” explains Gregory of eral population.” Nall cited avocados, limes more for Asian-cut broccoli, a style that the Nickey Gregory. and onions among the produce items that removes as much of the stem as possible. But business still goes on pretty much as have become more important around Atlanta Similarly, Hispanic restaurants often order usual when it comes to the mainstream mar- because of the growing Hispanic community a lot of avocados, jalapenos, tomatoes, keting of common produce items. “We sell over the past decade and more. shredded lettuce and peppers.” through the supermarkets and we’re doing all “It’s getting very ethnically diverse; there’s The influence of the immigrant popula- right; we sell all we can buy,” remarks Walter a lot of Hispanics and Asians in the Atlanta tions on produce business in the Atlanta met- Hoch, president of Forest Park, GA-based Fi- area,” agrees Andrew Scott, sales and pro- ropolitan area extends all the way to the most delity Fruit & Produce Co., who just turned curement manager for General Produce Inc., mainstreamofinstitutionsinthefoodsys- over the family-owned business to his son in Forest Park, GA. “Atlanta is a melting pot, tem. “Even McDonald’s has a breakfast bur- David.“We sell bananas, pineapples and plan- and more unique produce items are coming rito,” points out Nickey Gregory, president tains from Dole, Chiquita and Del Monte.” in.” He contends the Asian influence has in- and owner of Nickey Gregory Co. LLC, in Another mark of the recession is the grow- creased his firm’s shipments of items such as Forest Park, GA. pb ing number of restaurants and other foodser- vice operations looking to save on labor and equipmentbypurchasingprocessedproduce dustrial. Most of the residential growth has cluding a substantial recent consolidation of that is ready to go. “What has been driving the been on the north end of the city.” the supermarket sector. Kroger, Publix and market recently has been the fresh-cut or The market for the produce that comes Wal-Mart have emerged as the dominant pro- processed produce,” contends Joe Lafiosca, re- through this hub is brisk, as evidenced by the growingdemandforwarehousespace.“I would say the market is still very strong,” re- marks Andrew Scott, sales and procurement manager for General Produce Inc., in Forest Park, GA. “We have four warehouses there — wedeliverto11states—andthereisawaiting list for warehouse space.” One source of growth at the market is new firms from many areas of the United States and the world who grow the produce desired by the area’s expanding immigrant population.“With the growth of all the Hispanic companies in the past 10 years, the change has been dramatic in the population and the number of busi- nesses,” reports Gregory. “The Asian popula- More than one million people shop the retail tion has been growing, too, but not as fast.” section of the Atlanta Sate Farmers’ Market Tightening Of The Belt looking for locally grown The recession has left its mark on Atlanta’s PHOTO COURTESY OF THE GEORGIA DEPARTMENT OF AGRICULTURE items such as peaches produce industry in Atlanta in many ways, in- and strawberries.

70 PRODUCE BUSINESS • NOVEMBER 2010 • Full Line Distributor • Retail Support Programs - DSD • Repacking Operation • Cross Docking • Southeast Satellite Cross Docking Facilities • Forward Distribution • Company-Owned Transportation

For more information regarding the services we provide, Call 1-800-782-5833 Ext. 169 Atlanta State Farmers’ Market www.generalproduceinc.com

Reader Service # 61 ATLANTA MARKET PROFILE

looking for ways to improve their bottom line “What has been driving the market recently without sacrificing quality.” The move toward fresh-cut is also another has been the fresh-cut or processed produce. We part of the answer to the issue of food safety. opened the only fresh-cut plant in the Atlanta “By eliminating the need to prepare vegetables, you effectively reduce the risk of contamination area in 2002, and we’ve had more significant through utensils, cutlery, dishes and employee growth than ever during the past 18 months.” injury,” points out Reagin. “In addition to the — Joe Lafiosca, Freshpoint Atlanta Inc. time it takes to effectively prepare produce, the process often exposes clean fruits and vegeta- gional vice president for sales for Freshpoint At- restaurants can avoid expensive investments in blestobacteriathatmayexistinyourkitchen.” lanta Inc., headquartered in Atlanta, GA. “We unnecessary appliances.” opened the only fresh-cut plant in the Atlanta Reagin, too, has noticed that cost-conscious Local Matters, But What Is Local? area in 2002, and we’ve had more significant restaurants are seeing fresh-cut produce as a Food safety is one of the issues driving the growth than ever during the past 18 months.” waytoeconomize.“Pre-cutvegetablescanre- demand for locally grown produce in the At- The reason for this new trend is a matter of duce work force costs by decreasing the num- lanta area, just like everywhere else in the coun- dollars and cents. “People are looking to cut ber of employees needed to wash and process try. “People are looking for locally grown labor,” says Lafiosca. “They would rather use vegetables,” he discloses. “This affects a busi- produce because they believe it is safer and be- our labor and have a finished product.” ness in two ways; with fewer staff needed to causeitoffersarelationshipbetweenconsumer The pre-cut produce not only saves on wash and cut produce, you’ll be saving money and farmers,” says Kent Wolfe, director of the labor, it also eliminates the need to invest on staff costs. Additionally, operators have the Center for Agriculture and Economic Devel- money and space in the expensive equipment opportunity to shift part of their workforce to opment at the University of Georgia, in Athens. that is needed to prepare fruits and vegetables the restaurant floor to improve customer serv- Buying local produce is undeniably a grow- efficiently. “Lettuce shredders aren’t only ex- ice. For operators, pre-cut vegetables offer sev- ing trend in the Atlanta area, but there are pensive, but they take up a lot of counter eral benefits to whole produce, and customers many layers to the definition of local. “In the space,”emphasizes Frank Reagin of U.S. Food- can rarely tell the difference. Given the restau- past several years, community farmers’ mar- service. “By ordering pre-cut vegetables, rant industry’s current state, operators are kets have really picked up in Atlanta,”remarks Brandon Ashley, commodity specialist for the Macon-based Georgia Farm Bureau Co.“Peo- ple are trying to buy local and they are looking for something to do on the weekend.” Ashley has noticed that these community farmers’ markets have become particularly prominent in the wealthier neighborhoods of Atlanta. Another sign of the desire to buy local and get back in touch with the farm is the growing number of roadside farm stands just a few miles outside of metropolitan Atlanta. “The farmers I work with have roadside stands on the farm,” reports Ashley. “Those have really picked up and they are a great way to educate the public about farming through agritourism.” Within a few miles of Atlanta you can find U-Pick strawberry farms, corn mazes or pumpkin patches. “It’s a good way to stay on your land and make a go of it,”Ashley says. Many Atlanta consumers have joined the growing number of CSA (community sup- ported agriculture) buying clubs, in which members sign up to buy a box of locally grown produce every week. “There are more and more buying co-ops springing up in the Southeast. Consumers have begun to organize many of the buying clubs. In the past two or three years, it has really taken off,”says Dee Dee Digby, president of Destiny Organics LLC, in Forest Park, GA. Digby has found that the demand for or- ganic produce, in stores or through buying co- Reader Service # 13

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Reader Service # 60 ATLANTA MARKET PROFILE

ops, has remained strong through the reces- “Buying local is becoming a lot more important, sion.“I haven’t really seen the impact of the re- cession on organic produce near Atlanta at all,” but it’s not always easy to say what local means, remarks Digby. “It may have hurt some of the because it could be an hour or two or more from smaller stores in the resort areas, but not here in Atlanta.” central Atlanta to the farms.” A growing number of Atlanta residents are — Hubert Nall, Hubert H. Nall Co. Inc. also traveling 90 minutes north of the city to apple country, where they visit roadside stands with apples or fresh apple pies; or traveling 90 minutes south of the city to the Macon area where they find stands with Georgia peaches, fresh peach pie or peach ice cream. “Overall, these roadside stands have increased, and they are doing more agritourism,” reports Ashley. “A lot of these farms do a great job of educat- ing the public about agriculture.” The desire to buy local has also reached su- permarkets in the Atlanta area.“At some of our workshops, retail buyers have come by and ex- pressed their interest in local produce,” notes Wolfe of the University of Georgia.“There’s a lot of interest in buying Georgia-grown produce.” However the definition of “local” can be a bit elusive. “Buying local is becoming a lot more important, but it’s not always easy to say what local means because it could be an hour or two or more from central Atlanta to the farms,”Nall of Hubert H. Nall says. A relatively broad definition of local can embrace produce from throughout the entire region. “Buying local to reduce the carbon footprint became the thing to do about two years ago,”Freshpoint’s Lafiosca says. “A lot of people are looking for locally grown produce, which typically means grown in the state of GeorgiaorinanystatethatbordersGeorgia— Florida, Alabama, Tennessee and the Carolinas. There’s more and more focus on the locally grown produce when it is available.” The approach some distributors are taking is to let the buyers see where the produce was grown and decide for themselves if it meets the definition of local.“The process of buying local produce isn’t an exact science,”admits Reagin. “For example, different suppliers have differ- ent rules as to what qualifies under the local category. One seller may have a distance limit where the produce can be grown, while for an- other seller, it may just have to be grown in the same state. At U.S. Foodservice, we try to pro- vide a variety of options to our customers so they may make their own choices about buying local. That’s why we created a new feature on our online ordering system that allows our cus- tomers to view detailed product information, including the location of the grower or manu- facturer and the distance from the supplier to the U.S. Foodservice distribution center.” pb Reader Service # 30

74 PRODUCE BUSINESS • NOVEMBER 2010 NewYork City Food Scene Local produce is the talk of this foodie town, be it in a metro-urban supermarket, a new European hall concept or in an ultra-modern restaurant on the Upper West Side. BY THERESA BRAINE

COURTNEY DUDLEY

NOVEMBER 2010 • PRODUCE BUSINESS 75 Wine Bar in Queens, and Anella, a New York magazine critic’s pick in Brooklyn, are just two of them. “I do believe that the public is really still pushing the envelope in terms of wanting fresher healthier choices, and because of that, the restaurants are listening,” contends Fitzsimmons. “Fresh produce has found its way into many new areas of the menu, and we’re always looking to increase and bol- ster those choices.” When it comes to restaurants, “the biggest growing trend has not been so much the variety of product this year, but the growing region,” Fitzsimmons said. “That is, without a doubt, what people are on the phone talking about, as opposed to selection and variety.” Both retail cus- tomers and restaurant diners almost don’t care what produce they are eating as long as it was grown nearby. “That is absolutely what my customers were demanding from us this past year,” he says. “Local is with- out a doubt the biggest trend in the indus- try, and has been, for the past year.” Joel Panagakos, executive vice president at J. King’s Food Service Professionals Inc., in Holtsville, NY, notes Ben’s Kosher Deli as an example. Its forté is fresh cole slaw, “and dur- ing the summer, they’ll use nothing but locally hile Manhattan is known Authority, a produce supplier based just out- grown cabbage for the cole slaw,” he says. around the world for its maze of side New York City in the suburb Oceanside, “It’s superb, and five times a year, they know Wone-way streets, this couldn’t be on Long Island. exactly what that taste profile is going to be.” farther from the truth when it comes to fresh At the other end of the spectrum, fruits and vegetables. In the world accord- Produce Popping Up many hotels, especially the upscale ones ing to produce, Manhattan is a two-way This rooftop-to-table concept, as the — the likes of the Hilton, St. Regis or street. On the one hand, supermarkets from trend has been dubbed, is happening all Sheraton — “use a lot of specialty items King Kullen to Whole Foods display photos over the city. The Gramercy Park Hotel’s and focus on — especially for the past and posters of the farmers and families who urban farmers — Chefs Nick Anderer and couple of years — the many local prod- grow the local produce that overflow the Dan Dilworth, along with Kevin Denton, ucts that are available during the summer aisles’ bins during summer and fall. Grow- who manages the hotel’s Roof Top Club — months from Long Island and the sur- ers are becoming the new rock stars. repurpose everything from old stockpots to rounding areas to complement their On the other hand, so enamored is New filing cabinets and floorboards for the infra- menu,” Panagakos notes. “Those upscale York City by local produce that some chefs structure of their rooftop garden, according venues trend to having perhaps three col- are converting themselves into farmers. to CNN’s Eatocracy. Growing their own ors of asparagus on a plate — white, pur- Take Chef John Mooney, who grows almost allows them to cultivate rarer forms of pro- ple and green — to complement the all the produce for his new restaurant, Bell, duce, such as purple okra, as noted in appearance of the presentation.” Book & Candle, in a hydroponic garden CNN’s August 2010 story. Time Out magazine gives a tip of the hat atop the six-story Greenwich Village town- Roberta, a hip Brooklyn pizza joint, uses to Barbarini Alimentari, in Manhattan’s house that houses his basement eatery. toppings grown in its backyard. financial district, for its fresh produce. Mooney grows mint, chick peas, tomatoes, In addition to restaurants growing their Chef/produce maven Bill Telepan, presid- lettuce, strawberries and other fruits and own food, on the other side of the coin are ing over his namesake restaurant, Telepan, vegetables that serve nearly all the restau- the rooftop gardens that sell their produce raves about the greenmarket at Union Square, rant’s produce needs. Most of the produce and/or run restaurants. New York magazine where he shops for his Upper West Side is lowered by pulley down to the 80-seat recentlydocumented14suchfarms—one restaurant. “If you’re a first-timer, you’re restaurant, according to an August 2010 of them in the bed of a pickup truck — gonna faint,” he told the New York magazine Nightline report on Bell & Candle. T throughout the boroughs of Queens, food blog Grubstreet. “You’re goin’ down.” “The new celebrity chef is the farmer,” Brooklyn and the Bronx. Rooftop Farms in One thing that hasn’t gone down is vol- declares Bob Fitzsimmons, president of Food Greenpoint, which sells to Vesta Trattoria & ume. Wherever it comes from, New York’s

76 PRODUCE BUSINESS • NOVEMBER 2010 800-223-8080 • 718-991-5900 www.darrigony.com

Reader Service # 8 Eataly Debuts Celebrity chef Mario Batali’s on a very busy day. “It’s way beyond 50,000-square-foot Eataly, patterned what we expected,” he admitted. after a European food hall, is a tourist Eataly is the brainchild of Italian In NYC Mecca, especially on the weekend. entrepreneur, Oscar Farinetti, who Chaotic and noisy, its restaurants — started his concept in Turin, Italy, each dealing with a specific food and brought together Bastianich group: meat, fish, and yes, fresh pro- along with chef/teacher/restaura- duce, too — are ringed with aisles teur/cooking show host, Lidia and shoppers. Le Verdure, the pro- Bastianich — who happens to be duce restaurant, creates innovative Joe’smom—toworkwithBatalion dishes with fresh fruits and vegeta- the New York version. bles, and neighboring the tables is a In keeping with the locally grown single aisle of artfully arranged fruits trend, Le Verdure’s other signage and vegetables. In fact, it is so serious advertises “Good Growing” and notes about its mission that the restaurant broccoli from Maine, tomatoes from COURTNEY DUDLEY strictly serves vegetarian fare only. New Jersey and fingerling potatoes Creative signage hawks the virtues from New York. The menu ranges from of eating vegetables. “Bottom line: staples such as grilled vegetables and Mom was right. Vegetables are good eggplant Caponata, an Heirloom for you,” reads the first of the graph- Tomato and Radish Salad and Sweet ically pleasing “8 Rules” posted Corn Bruschetta with Roasted Garlic. above the tables (pictured center Though it’s fun to check out, local right). Underneath the not-always- folk say they wouldn’t go out of their grammatically-correct English are way for a $9 soup. The prices are smaller italicized versions of the rules upscale, but the atmosphere remains in, of course, Italian. There are obvi- casual. The creative fare includes

COURTNEY DUDLEY ous statements such as, “When you innovative dishes such as a lasagna buy them fresh, they are full of fla- of green beans and pesto, topped vor,” and “Vegetables can be pre- with a sprinkling of pine nuts. There pared a thousand different ways,” as are also grilled and tempura vegeta- well as tips on not overcooking your bles, salads with fennel and other off- cooked vegetables or overdressing beat greens, and hearty soups. your raw ones. A downside is that if you want cof- “How can you not fall in love with fee at the end of your meal, you must something that tastes good and slog across the venue to the coffee makes you look good?” reads Rule bar. The best time to go may be No. 8. Eataly’s owner, Joe Bastianich, weekdays between 3 and 5pm, when told Fox News that the hall averages it’s the least likely to be too crowded COURTNEY DUDLEY 8,000 people daily, with up to 12,000 to enjoy. pb

consumers are eating more and more fruits more supermarket produce sections both veggies is also evident, an answer to con- and vegetables, at least according to pro- inside and outside the city. Whole Foods in sumers’ need to eat healthfully on the go. duce suppliers. “Our volume has without a New York City uses pictures of the Gene- Fairway, the precursor to them all, has doubt increased year after year, and growth seo, NY, farmer next to the cauliflower he spread beyond its original Upper West Side has been something we’ve enjoyed even in grows, for instance, and King Kullen on location to various other locations through- the toughest of economies,” reports Long Island displays posters of Schmitt fam- out the city and its environs, and now Fitzsimmons. “We’re definitely seeing more ily members and their farm where they includes a cafe, as does Whole Foods. The produce consumed out there and we’re still grow and package salad mixes, among gourmet Dean & Deluca — around for seeing the trend being helpful to our other goods. decades — caters to produce-loving con- growth,” he continues, citing 15 percent The produce aisles of urban and subur- sumers with a cafe and well-stocked pro- annual growth in produce sales over the ban supermarkets alike have burst into duce section as well. There’s also Union past few years. “So it’s pretty significant.” bloom in recent years, featuring mounds of Market in Brooklyn, with locations in both fresh fruits and vegetables, many cross- Cobble Hill and Park Slope; Gourmet Love For Locally Grown marketed with things like cheese and nuts. Garage, which started as a foodservice sup- Locally grown is taking over more and A preponderance of fresh-cut fruits and plier in 1981 and has now opened its pro-

78 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 9 Hunts Point Market Launches Rebranding Efforts TV personality Tony Tantillo is part of multi-faceted campaign to “lift the veil” of the largest wholesale market in North America. BY AMY SHANNON New York’s Hunts Point Pro- knowledge and created a career out of relaying timely tips and duce Market is a vast and eclectic advice to consumers on a variety of issues pertaining to fresh fruits powerhouse of more than 45 fruit and vegetables. and vegetable wholesalers oper- Tantillo’s 90-second television segments cover everything from ating as a cohesive co-op for preparation, production, selection, storage and important nutri- more than four decades. Nestled tional information, the consumer advocate says. He shows view- in the Bronx, just north of Man- ers how to determine when produce might be too costly, of poor hattan’s Upper East Side and East quality or not at its peak of freshness. Harlem, the market is home to the Tantillo’s Fresh Ideas magazine is available in the produce one of the world’s largest cultur- departments in all Safeway, Vons, Dominick’s, Pavilions, Randall’s, ally diverse regions, and its rev- Tom Thumb, Carr’s, Genuardi’s and Grocery Works supermarkets. enues exceed $2 billion annually Enthusiastic about produce on camera and off, Tantillo has — more than any other produce Tony Tantillo served as the greater San Francisco Bay Area’s Fresh Grocer terminal market in the world. since 1992. After moving to New York in 2000, Tantillo became Open to the public for anyone wishing to purchase a box or more the local food editor for CBS Channel 2 News, currently appear- of produce, the Hunts Point Market provides the freshest produce ing in Tony’s Dining Deals segment every Sunday at 6:20 a.m. to New York City’s supermarkets, green grocers, restaurants, insti- EST. He can also been seen on the Noon News when he offers tutions and other wholesalers up and down the Eastern Seaboard. fresh produce tips and new, Today, the Hunts Point Produce Market is undergoing a series appetizing recipes. of rebranding and marketing efforts to create a more inviting image In New York, the Hunts Point that will appeal to the more than 22 million people in the 50-mile Produce Market has began spon- stretch of neighborhoods surrounding the market. soring some of his produce seg- “We want to make it more approachable,” explains Tony Tan- ments in October and will tillo, who is also known as “The Fresh Grocer,” and appears as continue to gain air time until host of several produce segments on CBS-Channel 2 and five other fall 2011. premiere TV markets throughout the United States. “As big as the Beyond television, the Hunts Point Market is, it still seems a little bit closed in,” he says. Hunts Point Produce Mar- “We want to lift the veil, so to speak.” ket’s rebranding and mar- As part of the new campaign, Tantillo will serve as the new face keting campaign will also of the Hunts Point Produce Market. “I’m excited to be the market’s utilize print, Web site and spokesperson,” he notes. “I grew up in the [San Francisco] pro- social media outlets in duce market. Produce is my life. It’s my love.” Captivated by the an effort to “reintroduce produce industry at a young age, Tantillo moved to San Francisco the best and largest” from Sicily when he was just five years old. There, he learned the produce market to New ins and outs of the business while working with his father in the York and the Tri-State South San Francisco produce markets. He’s since built on that Area. pb

“Upscale venues trend to having

perhaps three colors of aspargus on a delivery service, will bike your Union plate — white, purple and green — to Squareproducerighttoyourdoorifyou live in Manhattan. “Fresh-grown fresh- complement the appearance of the harvested, is just becoming more and presentation.” more a way of life,” says Food Authority’s — Joel Panagakos, J. King’s Food Service Professionals Inc. Fitzsimmons. This is in schools, govern- ment and even prisons, where “there are duce-filled Soho warehouse to the public; NewYorkifheisn’tgrowingtheminhis more and more fresh products being con- and the Vinegar Factory’s Eli Zabar buys his rooftop greenhouse. sumed than ever before. It’s just the vegetables directly from farmers in upstate From Earth to Kitchen, a produce healthier option.”

80 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 15 Go Go Green Carts The carts can be seen all over the New York City neighborhoods with city, from busy street corners to the the most limited access to fresh sidewalks beneath elevated subway and nutritious foods,” notes the tracks. Some are sponsored by the program press release. likes of Home Depot and other Support to vendors is pro- retailers, according to the beach vided by Karp Resources, umbrella that inevitably shelters which helps them identify vendors from the sun. However, the suitable cart locations, pro- main impetus behind them is New vides entrepreneurship York City’s Department of Health and training, develops partner- Mental Hygiene (DHMH), which ships with community- established the Green Cart program based health and nutrition in 2008 in an effort to combat a organizations and sources scarcity of fresh produce in some quality produce. city neighborhoods. The number of gro- Funded by a $1.5 million grant cery stores in New York from the Laurie M. Tisch Illumination City has dropped by a Fund, the Green Cart Initiative pro- third over the past six vides micro-loans and technical assis- years, reports Karp tance to Green Cart operators who Resources, with the must have a valid mobile food vend- trend disproportionately ing license and a permit for the cart. affecting lower-income Operators also get help with brand- neighborhoods. By giv- ing, marketing and community out- ing produce-poor neigh- reach to attract customers. The borhoods access to initiative is part of a public-private fresh, healthful foods, Reader Service # 67 effort to improve access to healthy the city hopes to make a foods through the creation of 1,000 dent in rates of such new street vending permits. nutrition-related prob- “Green Cart vendors are independ- lems as diabetes, heart ent businesses selling fresh, disease, high blood pres- unprocessed fruits and vegetables in sure and obesity. pb

“The norm is no longer the norm. What used to be a specialty is now a standard item, and what was standard is now almost nonexistent.” — Bob Fitzsimmons, Food Authority

A Changing Produce Landscape almost nonexistent,” explains Fitzsim- Two other trends are influencing con- mons. For instance, mesclun mix used to sumption as well. For one thing, what be a high-end specialty, “and now it’s one used to be considered gourmet is now of the biggest regularly traded items that’s commonplace. For another, an increase so marginal it’s considered the low end of in the Latino population has supermar- the spectrum in terms of what’s used out kets routinely stocked with staples of there,” Fitzsimmons says. “It has become nations from the Caribbean to the tip of the new iceberg.” South America. When it comes to the growing Latino “The norm is no longer the norm. What population, suburban produce aisles both used to be a specialty is now a standard in New Jersey and on Long Island are over- item, and what was standard is now flowing with goodies like yucca, papaya Reader Service # 38

82 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 27 Desi Food Truck

The bright yellow Desi Food Truck, decorated Indian artisan- up Indian cuisine that includes a couple of vegetarian options. style with festively painted hubcaps and handcrafted metal over- Halal trucks, more common than Starbucks, sell mostly meat, lays along the sides and front, looks like a mini school bus gone and Desi does likewise, but with vegetable-based dishes such as rogue. An answer to the ubiquitous Halal kiosks that have sprung tasty potato-stuffed kati rolls that complement chicken tikka up on the streets of New York City over the past few years, the masala, curried chicken, aloo masala and the lentil mix known as truck, parked discreetly at 27th Street just off Fifth Avenue, serves dal, all at affordable prices ranging from $4 to $8. pb and mango. Indeed, most of the personnel experiments happen, Fitzsimmons says. “I York seems to be the trendiest and most and half the customers conduct their entire certainly feel like New York is the labora- cutting-edge city when it comes to having shopping trip in Spanish. tory,andIdobelievethathereinthe the renowned chefs that we have trying all New York is the place where these United States there’s no doubt that New different things.” pb

VISIT US AT NY P RODUCE SHOW BOOTH #2815 Reader Service # 78 Reader Service # 40

84 PRODUCE BUSINESS • NOVEMBER 2010 NEW YORK FOOD SCENE

REACHING TO THE ROOFTOPS Ben Flanner, head farmer at Brooklyn Grange, based in Long Island City, NY, talks to Mira Slott about his 40,000-square-foot organic rooftop farm and where the future of farming is heading.

PHOTOS COURTESY OF MIRA SLOTT

BEN FLANNER: URBAN FARMER By Mira Slott (Excerpted from Jim Pevor’s Perishable Pundit, 10/20/10)

The 40,000-square-foot farm is made up of roughly 1.2 million pounds of soil and over 20,000 linear feet of green roofing material.

What inspired you to develop this innovative and expansive of roughly 1.2 million pounds of soil and over 20,000 linear feet urban rooftop farm project? Spanning close to an acre, dozens of green roofing material). We also pick everything the same day of varieties of vegetables, fruits and herbs are growing and thriv- that we deliver to our chefs. ing from a rooftop with a breathtaking view of the Manhattan skyline in the background. Was there a notable moment, or a con- Tell us about your customers, and the types of potential cus- fluence of different circumstances that pushed you forward in tomers that could benefit from your operation. your mission? Our operation is split between our markets (direct to consumer) It was a strong interest in farming coupled with a desire to and restaurants/retail. Markets make up about 40 percent of our remain in the city, plus the pure practicality of the project. There sales, while restaurants and retail establishments are about 60 per- are also so many community and environmental benefits, which cent. Chefs are very fun and exciting to deal with, however we continued to make the concept feel right. struggle to keep up with the sales and service side, due to limited time and transport resources. What do you see as the greatest challenges? The greatest challenges are sales and distribution. From the How unique is Brooklyn Grange? Are there other projects growing side, I’d say dealing with the wind is most difficult. popping up like this in the region, and around the country? It is one of a kind right now. No commercial operation of this You seem to have experience in that regard. Recently, on a scale exists currently. Hydroponics operations are being sized stormy day, you moved swiftly and purposefully to weatherproof and considered. the farm as the wind gusts picked up and the skies were about to burst with torrential rain. What are some of the biggest surprises One of your interns, Hayley Knafel, an environmental stud- you’ve discovered as you’re developing this project? ies major at New York University, shared her perspective. She Things grow great! Shishito peppers, Aji Dulce peppers, Ruby said she’s uplifted by the opportunity, every time she looks out Streaks mustard greens. The total domination of flea beetles in July, from Brooklyn Grange at all the other rooftops across the City and the ability of weed seeds to blow up six stories in only about landscape. Where do you see the most untapped potential for seven days after the installation. urban farming? Roofs in very dense cities. It may not make as much sense in On a visit in October, your associate, Anastasia Cole, less dense cities with less expensive land near to the city centers. pointed out the unusual Italian Cucuzza squash that grows really long. Also in season at that time, spinach was back, wild Are there other related or unrelated projects that have sparked arugula, carrots, French breakfast radishes, end-of-season your interest? tomato varieties, eggplant, sweet peppers, hot peppers, mixed Hydroponic projects. I’m interested in trying to curb hydro to lettuces and herbs including Thai basil, thyme and rosemary. make it more environmental, to produce more flavorful produce, There was also a purple tomatillo that tasted like a plum. What and then I would be interested in testing it. else could you tell us that might surprise people in the pro- duce industry? What do you envision five years from now for Brooklyn I think the produce industry might be surprised at how much Grange and for urban farming in a broader realm? volume we can grow, especially salad greens in the spring. There I want to prove that this will be a viable commercial operation, are hundreds of thousands of plants on the roof and we farm about and then help to improve our food system, while carrying out an nine months of the year. [The 40,000-square-foot farm is made up enjoyable career doing something that I love, which is farming.

NOVEMBER 2010 • PRODUCE BUSINESS 87 The New York Produce Show and Conference Wishes to Salute These Forward-thinking Organizations: OUR CHARTER SPONSORS SPONSORS

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. N I SINCE 1901 Reader Service # 22 MERCHANDISING REVIEW Six Ways To Merchandise Citrus Year-Round With a little creativity and imagination, it’s possible to leverage sales and generate repeat buyers year-round. BY JULIE COOK RAMIREZ ADDITIONAL REPORTING BY CAROL BAREUTHER, RD

Displaying sliced overwrapped citrus shows consumers that even if the skin is slightly bruised, the flesh inside remains unharmed.

ot long ago, citrus was a seasonal and chief marketing officer for Seald-Sweet In- looking for more seasonal items, so it proba- affair. With the advent of im- ternational, in Vero Beach, FL, says, “Florida bly makes more sense from a retail standpoint ported produce, however, citrus citrus, in general, is very good quality this year to concentrate on those, rather than on im- is now a year-round commodity, in terms of external appearance and internal ported citrus. Nalthough most retailers will agree eating quality.”The peak period for merchan- Follow these six tips for more effective cit- that demand is still stronger in season from dising Florida grapefruit is January and Feb- rus merchandising not only during the sum- OctobertoAprilthanwhenSouthernhemi- ruary. He adds, “We offer high-graphic bins mer months, but year-round. sphere product comes ashore during the sum- that have the National Heart Association’s mer months. Heart-Check symbol.” 1. Adopt A Healthy Approach While there is a slight spike in merchandis- Admittedly, there are some suppliers of do- It may sound deceptively simple, but a great ing and advertising come Back-to-School time, mestic product who would prefer that retailers deal of value can be gained by promoting the overall, retailers could stand to do more in the not aggressively merchandise citrus during the healthfulness of citrus. In an odd case of way of merchandising, particularly during the summer and fall. If supplies tighten up for a serendipity,“citrus season”hits at the same time summer months. “There is not a lot of inter- time, it creates some pent-up demand for the as cold and flu season, when consumers seek esting merchandising going on during that new crop, they reason. “Frankly, I’d rather not products that will help them avoid or treat time frame because retailers are basically put- see them merchandise citrus in the summer dreaded wintertime contagions. It’s debatable ting the citrus off to the side and focusing on and fall,” says Neil Galone, vice president of whetherwewilleverseeabinoforangesdis- summer fruit, such as grapes, melons, berries sales and marketing at Orange Cove, CA-based played next to TheraFlu or Tylenol, but there and all the stone fruit — like peaches, plums, Booth Ranches LLC.“I’d rather see them mer- are still ways to remind consumers that citrus and nectarines,” contends Paul Marier, senior chandise some of their local stuff, so that when is loaded with immunity-boosting vitamin C, vice president of sales and marketing for Fisher the California citrus starts back up again, con- along with a healthy dose of folic acid and vita- Capespan U.S.A. LLC, headquartered in sumers see it as a new crop and get excited min A. Gloucester City, NJ. about it.” Al Finch, vice president of sales and mar- Citrus fruits from Florida, Texas and Cali- That said, Galone concedes that retailers keting for Florida Classic Growers Inc. (for- fornia are in a perfect position for promotion must have citrus to offer to their customers merly Diversified Citrus Marketing), in Lake this winter. David Mixon, senior vice president during the summer. Even so, he says, people are Hamilton, FL, remarks that he’s seen retailers

NOVEMBER 2010 • PRODUCE BUSINESS 91 MERCHANDISING REVIEW

Waterfall displays positioned at end-caps catch consumers’ attention.

merchandising citrus specifically for cold and tive interactions between grapefruit and cho- flu season and reflecting that connection in lesterol medications, according to Trent their ad circulars. More than that, however, he Bishop, sales manager at Lone Star Citrus likestoseethehealthbenefitsofcitrusreflected Growers, in Mission, TX. at the display itself. “Getting those messages out at the point of sale is crucial,” says Finch. 2. Go Big “Retailers are doing an excellent job identify- Remember the old adage “Out of sight, out ing all the health benefits of citrus in their POS of mind?”Make that your mantra as you strive materials, in an effort to capture the health- to keep citrus at the forefront of shoppers’ conscious consumer.” minds, particularly during the summer “Promote the health aspects of fresh citrus months when stone fruit, berries and melons for cold and flu season,” suggests Paula get the lion’s share of the attention. Many pro- Fouchek, marketing director at Edinburg Cit- duce sales are impulse-driven, so make sure rus Assoc., in Edinburg, TX.“In addition, build consumers can’t help but see the beautiful, suc- massive waterfall displays and secondary dis- culent citrus you have available in your store. plays to catch consumers’ attention; set out “Large displays can create great selling op- samples for demos; and cross-merchandise. portunities,” acknowledges Joe LoBue, manag- For example, merchandise citrus with fresh ing partner at LoBue Bros. Inc., in Lindsay, CA. spinach, sliced almonds, poppy seeds and rasp- “A lot of items in fresh produce are driven by berry vinaigrette along with a salad recipe.” impulse purchases and consumers need to be Of course, it doesn’t have to be cold and flu reminded and inspired to purchase a variety of season to pitch all the healthful characteristics items, including fresh citrus.” of citrus. Oranges, grapefruit, lemons and other Take advantage of peak supply times by formsofcitrusarenutritiouschoicesanytime staging a citrus extravaganza! Be creative and of year. Last year, a group of Italian researchers have fun with it. Try using a tropical theme and found that people who eat a great deal of citrus encourage produce staff to dress in tropical have significantly reduced instances of several shirts. Fouchek suggests creating a“show-stop- particularly deadly cancers, including per,” using waterfalls, end-caps or freestanding esophageal, laryngeal, stomach and colorectal. displays in the produce department. This kind Watch for opportunities to promote such news, of initiative can be especially appropriate dur- and encourage customers to boost their own ing the cold winter months, when much of the consumption of citrus for good health. country is plunged into the deep freeze and “There’s a real emphasis on healthful eating snow is on the ground. and making better choices when picking a Any time of year, consider building large snack,”says Paul Huckabay, western citrus sales end-cap displays — the larger, the better — to manager at Oviedo, FL-based Duda Farm Fresh grab customers’ attention as they shop your Foods Inc.“That’s what’s driving the increase in store. Many citrus-lovers anticipate the arrival demand for items such as Mandarin oranges.” of their favorite varieties, but without sufficient Such initiatives will also help counter displays and signage, they may simply be un- health-related decreases in sales, such as that aware that a beloved item is available.“It’s really which hit the grapefruit industry due to nega- important to let consumers know there is some- Reader Service # 24

92 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 17 MERCHANDISING REVIEW “If you have a customer that inquires about whether a fruit is ready or not, don’t hesitate to cut up a piece and let them try it and then sample the remaining pieces to other people that are walking through the produce department. That’s good merchandising.” — Neil Galone, Booth Ranches LLC

thing new and different in the store and to make somewhat prominent to trigger the purchase,” a to-do about it,”says Fouchek of Edinburg Cit- details Darrell Genthner, director of marketing rus. “Excitement brings excitement. When you and business development at Winter Haven, see a lot of activity going on in the produce de- FL-based Noble Worldwide Florida Citrus partment, it certainly catches your attention.” Sales. “A wing or auxiliary-type display works New this season, the Bartow-based Florida well with new gourmet or trendy items.” Department of Citrus (FDOC), can provide retailers with 5x7-inch display cards, 3x5-inch 3. Keep It Fresh brochures with product, nutrition information No one is going to want to buy citrus that and recipes and 21x30-inch bin posters for looks shabby, so make sure your displays are fresh grapefruit. These same materials are also fresh and appealing at all times. Sales and qual- available for oranges and tangerines. ity go hand-in-hand, so carefully follow guide- United Supermarkets LLC, a 37-unit chain lines with regard to temperature requirements, based in Lubbock, TX, has found success using and make sure your produce staff is knowl- half-pallet displays of both Cara Cara oranges edgeable about such matters to ensure the kind and Clementines, according to Tommy of quality display that drives sales.“Keeping the Wilkins, director of produce procurement. The fruit special in the display is important,” says

Reader Service # 53 chain also features year-round end-cap dis- Fouchek. “You need to make sure they are plays of navel oranges. beingheldatthecorrecttemperatures,thatthe This season, there will be plenty of Cara displays are rotated, and that if anything begins Caras at market once again. Julie DeWolf, di- to look dull or shriveled, you remove them.” rector of retail marketing for Sunkist Growers Whereas oranges must be held at approx- Inc., headquartered in Van Nuys, CA, reports, imately 36 to 42°F, grapefruit needn’t be kept “This season marks the largest Cara Cara navel ascold,saysFouchek,soproceedaccordingly crop to date, up 20 percent from last year due to keep your store’s citrus in tip-top condi- to new acreage increasing in production. It’s tion. If product begins to look less-than- perfect timing for Sunkist, as the company will fresh, don’t hesitate to cull it from the introduce a Cara Cara bin with a customized display. After all, it’s not going to sell and it header card that provides valuable information will only reflect negatively on the rest of the about the variety. In addition, Sunkist will em- citrus in the display and the produce de- bark on new ways of promoting citrus through partment overall. “A good produce manager different tie-ins, couponing, mobile marketing, willmakesuretheykeepthedisplayslook- free trials of specialty citrus and charity dona- ing fresh,” says Booth Ranches’ Galone. “If tion programs.” that means taking something out that has Kathy Hearl, marketing promotions man- started to deteriorate and throwing it away, ager for Fort Pierce, FL-based DNE World that’s what you have to do.” Fruit Sales, warns retailers to be cautious when building displays to avoid damaging the 4. Offer Bagged And Bulk fruit. Oranges and grapefruit can be piled While bagged citrus reigns supreme in highwithoutmuchconcern.However,spe- many markets, it’s important to remember that cialty citrus, such as Clementines, should be some shoppers simply prefer bulk. Whether it’s displayedatashallowdepthtoavoidhaving amatterofselectingtheirownproductone- pressure from the fruit on the top damaging by-one or the desire to achieve a steady stream the fruit on the bottom. of fresh produce by only buying a small It’s also important to keep actual sales po- amount at any given time, bulk citrus sales are tential in mind when building such massive brisk in certain areas. displays.“An item such as a Pummelo does not At Phoenix, AZ-based Sprouts Farmers warrant an end-cap display, but needs to be Market LLC, for example, bulk sales make up

94 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 70 ECADSN REVIEW MERCHANDISING eto,rte hnterl.“eare the because “We simply product, bagged rule. the mote pro- successfully the to able being than with challenged rather ex- the ception, far by is that However, sell- fruit. bagged entertain ing will chain 54-unit the store, for buyer produce Cullen, Neil says retail,” typical than lower “much that’s pricing offer oppor- to an tunity is massive there If one week. each than — cart-buster rather — trips shopping several make who people base of primarily customer consists sales, Sprouts’ citrus because chain’s likely the most of majority vast the 96 Reader Service # 29 RDC UIES• BUSINESS PRODUCE OEBR2010 NOVEMBER ositt rae ecnaeo agdprod- bagged of percentage greater a to shift to do- wish than may Retailers ring product. wintertime higher mestic a carries im- citrus when ported summertime, the to comes particularly it retailers, when many re- for sales steady bagged main Still, own. their out picking and fruit,”handling buy“loose to prefer groups our be to seems customer.” bread-and-butter that shopper day-to-day “We explains. don’tlookatitasanegative,butforus,it’sthat he are,” they what are sales bulk ieie N’ er ascranethnic certain says Hearl DNE’s Likewise, tsntgigt aeaa rmyu bagged your vice-versa.” from or away oranges take to going oranges, not bulk it’s of display big a Ga- have remarks you bag,” a lone.“If up you pick you value when the get for can looking are there and who it others buy are they when fruit of piece each choice. of matter most a the it’s for part, time, the their at or needs price particular on own based forth and some back while go and may each, of customers are is, That there incremental. are sales Such Galone. according to need, no really there’s — or vice-versa — sales bulk cannibalize may citrus bagged Hearl. expectations,” says taste their to up live not cit- does the rus fruit, when season pleased not early are customers of the bag but citrus 5-lb. a a on sell market and to item first be to of want lot chains customers.“A off in turning avoid periods to order flavor peak during bags promote point. only should price retailers better advises a Hearl However, provide to order in uct .Gv at Test Taste A Give 5. osml atclryfaoflbtho cit- of batch flavorful particularly a sample to opportunity the customers curious simply giving or by department produce the in events sampling formal through be can They ac- tivities. sampling in engaging retailers more see to for alike.” snack into adults size and citrus kids perfect the get are to and boxes way lunch great a become “They man- have Sunkist. of like DeWolf out varieties points darins,” citrus easy-to-peel for older.” get continue they as will they now, citrus eating get children can says it,” we Growers.“If try Classic Florida to of children Finch get to and de- produce partment the through going consumer the in. comes sampling where That’s good. taste can’t simply healthy something that perception still there’s children, theenormoushurdleofovercomingachild’s to appealing more be to designs package their modified have suppliers many Although Huckabay. Duda’s says chil- dren, to comes it when particularly but groups, product.” the buy to enough getting excited in them difference huge a the make taste can to product chance the consumer the Fouchek. “Giving Edinburg’s asserts buds,” tantalize to taste got “You’ve the taste. a them offer than to product your like to going are they tomers Teeaecsoeswolk otouch to like who customers are “There that concerned be may retailers some While ot ace’Gln ash ol like would he says Galone Ranches’ Booth demand growing a be to continues “There capture to way best the always are “Demos age all across important is Sampling cus- convince to way better no There’s rus. “If you have customers who inquire all of Sprouts’ citrus sampling is in-house ini- aremorelikelytogrababagoforangesora about whether a fruit is ready or not, don’t tiatives because “there have not been a lot of fewgrapefruitwhenthepriceisright.Unfor- hesitate to cut up a piece and let them try it offers from shippers or growers to promote tunately, some retailers have failed to follow and then sample the remaining pieces to sampling of the citrus.” suit. “At certain times of the year when we are other people who are walking through the offering real aggressive pricing, we would like produce department,” explains Galone. 6. Get Aggressive to see those prices passed on to the consumer “That’s good merchandising.” Nothing speaks louder to the consumer to move the volume that we really need at that Sprouts has a standing policy that any cus- than a great value, particularly in these tough point in the year,”says Lone Star’s Bishop. tomer who wishes to taste a piece of produce economic times. Fortunately, there are a num- For those consumers who are already pur- can simply ask one of the produce staff. All are ber of approaches retailers can take to give cus- chasing citrus, encourage multiple purchases. prepared with “knife-in-hand” to do on-the- tomers a great value on citrus. When suppliers Motivate them to buy more than one bag by spot sampling. According to Cullen, virtually drop their prices, respond in kind. Consumers instituting multi-unit pricing. A well-placed sign reading, “$2.99 or 2-for-$5” goes a long wayinencouragingshopperstoplaceanextra bag of oranges or grapefruit in their cart. These days, consumers look for smaller packages — a 3-lb. rather than a 5-lb.-pound unit, for example. While the economy may be to blame in some instances, United Supermar- ket’s Wilkins says it’s often merely a matter of getting the price point low enough to convince the consumer to try something new. “We’ve seen a lot of retailers move away from the 5-lb.-pound box of Clementines to a 3-lb. or even a 2-lb. bag,” reports Finch of Florida Classic Growers. Don’t forget to include citrus in your weekly ad, even during the traditional“off-sea- son” when consumers may be focused more on stone fruit and other summertime fare. DNE’s Hearl advises retailers to have a weekly citrus item on ad along with a sub-feature and then mix it up: large sizes one week, small sizes the next, followed by bags. “At the end of the day, it’s all about adver- tising,” says Marier of Fisher Capespan.“If they putitintheflyersandtheyputitintheright position in the store and the display is right, you’re going to move merchandise.” While ads are important, Hearl says they are just one component in a wide-reaching strategy. If retailers hope to engage in a suc- cessful year-round merchandising effort, they must remember to approach the category from all possible angles, flex their creative muscle, and always be on the look-out for ways to get their customers to think citrus, regardless of what time of year it is. “Retailers who promote citrus with weekly ads, colorful displays with an assortment of color, offer bags and engage in in-store sam- pling during peak flavor periods have success- ful programs and grow their citrus sales,” remarks Hearl.“If they create an inviting shop- ping environment, while grabbing consumers’ attention and providing them with product in- formation, including healthful benefits, stor- ageandusage,notonlywilltheyleveragesales, but they will generate repeat buyers.” pb

NOVEMBER 2010 • PRODUCE BUSINESS 97 MERCHANDISING REVIEW Eight Ways To Boost Banana Sales Bananas are among the strongest produce performers and deserve retailers’ attention with eye-catching displays, creative cross-merchandising and informative POS. BY CAROL M. BAREUTHER, RD

Organic bananas are becoming more prevalent, and are frequently merchandised alongside their conventional counterparts.

ananas are definitely appealing. Ithinktheappealtoconsumersisthattheyare well as baby, red, burro,green/Guino and man- So much so that Wal-Mart, the easy to eat, come in their own package, are zanos. These varieties contributed 3 percent of world’s largest public corporation highly portable, healthful, a good value, versa- banana category sales in the 52-weeks ending with $408.21 billion in sales in tile and everyone seems to like them.” July 31, 2010, according to the Perishables 2009, sold more of this fruit than Group. This was up 2.9 percent from the year B 1. Keep The Cavendish any other single item last year, according to an prior. Peaks and valleys in specialty banana August article in Bloomberg’s Businessweek. Coming, But Expand Varieties sales are similar to the Cavendish variety — Beyond Wal-Mart, and looking solely at the According to Craig Stephen, vice president these fruit post their highest contribution to traditional supermarket channel, bananas also of finance and general manager at Chiquita the total banana category in the East at 4.45 fared well, contributing 6.2 percent of produce Brands International Inc., in Cincinnati, OH, percentcomparedtoalowof0.65percentin department sales in 2009, according to the Per- “The Cavendish variety represents well over 90 the Central region of the United States. ishables Group, a Chicago, IL-based market percent of sales in the banana category.” “Plantains are everyday items for us,”says Jose research firm. Sales of bananas are typically steady Manzano, director of produce at Dorothy Lane What’s more, bananas have not only held throughout the year. However, according to Markets, a three-store chain in Dayton, OH. their own, but gained in sales and volume, data from the Perishables Group, sales peaked Robert Schueller, director of public rela- despite a downturn in the economy. According during the first week of April and were lowest tions for Melissa’s/World Variety Produce Inc., to Fresh Facts on Retail reports published in late December to early January, during the in Los Angeles, CA, reports, “Plantains repre- between the third quarter of 2009 and second 52-week period ending July 31, 2010. Also dur- sent more than 70 percent of our specialty quarter of 2010, weekly per-store sales of ing this same time frame, the East led the way bananas sales. The next largest contributor is bananas increased roughly $1,000 — from just with $3,180 per store per week, while the South red bananas at 15 percent of sales.” over $2,400 to just over $2,500 — weekly store was the lowest contributor, with $1,836 per Red bananas and Niños, or baby bananas, volume increased steadily from 3,900 pounds store per week. are sold at Rice Epicurean Markets. Luchak to 4,260 pounds and the average retail Joe Palumbo, owner of Top Banana LLC, in says,“They do okay. The great thing is that they remained constant at 59-cents per pound. theBronx,NY,says,“Thereshouldbeasteady don’ttakeawayfromsalesoftheCavendish; Mark Luchak, director of produce and flo- supply of bananas available to meet demand, they add incremental sales.” ralatRiceEpicureanMarkets,afive-store barring any hurricanes.” Niños have increased in sales, acknowledges chain based in Houston, TX, reports, “Ton- Filling in the rest of the banana category are Paul Rosenblatt, vice president of Banana Dis- nage-wise, bananas are our No. 1 selling item. specialty bananas, which include plantains as tributors, in the Bronx, NY.“Years ago, we used

98 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 63 MERCHANDISING REVIEW

specialty banana varieties, especially in regions What’s New With Ripening Services? of the country where Hispanic and Caribbean communities are prevalent. Retailers can pro- “Today’s customers are looking for loads, three ripening rooms are the bare mote these bananas by using POS material that bananas that are flavorful and ready-to- minimum needed to assure proper describes the origin, health benefits, nutritional eat tonight or for tomorrow,” says Karen- scheduling and be able to provide the information and the proper handling instruc- Ann Christenbery, general manager at desired color stage of bananas for the tions. We also encourage retailers to use infor- American Ripener LLC, in Charlotte, NC. retail display seven days a week.” mational brochures, price cards and recipe “Suppliers are responding to this demand “This minimum volume is why whole- cards to their full potential in order to attract by providing ripe bananas for their cus- salers in large cities have carved out a and educate consumers.” tomers. Ripening programs have grown niche by ripening bananas for a number dramatically because of this. We have of independent retailers and small 2. Offer Organic seen an increase in companies starting chains,” explains Paul Rosenblatt, vice Conventionally and organically grown ripening programs as well as companies president of Banana Distributors, in the bananas both sell well at Dorothy Lane Mar- expanding their existing programs.” Bronx, NY. kets, says Manzano. “On an 8-ft. table of An external source of ethylene is Advancements in ripening bananas bananas, we’ll devote two to three feet to needed to trigger ripening in bananas. have come on the front-end and on the organic.” Greg Akins, president and CEO of Cat- back-end in the retail back room. Gold- There continues to be strong consumer alytic Generators LLC, headquartered in field says, “Ethylene Release Canister interest in organics, maintains Bil Goldfield, Norfolk, VA, asserts, “This is critical for (ERC) Container Ripening reduces han- communications manager for Westlake Village, the regular Cavendish variety. Ethylene dling damage by ripening bananas in the CA-based Dole Fresh Fruit Co.“These bananas also benefits the ripening of specialty same container in which they were orig- are becoming more prevalent in the retail bananas such as plantains, red inally packed, eliminating the steps of supermarkets. Syndicated data revealed that bananas and baby bananas as well. unloading the bananas from the con- organic banana sales performed similarly to Ethylene is also approved for ripening tainer, loading into the ripening room, conventional bananas by and large over the organic bananas.” then unloading from the ripening room past year, despite the difficult economic condi- Banana ripening is done by retailers, to a staging area. This method is a scal- tions that consumers faced.” wholesalers and importers. Bil Goldfield, able solution suitable for ripening vol- Chiquita’sStephenforeseesgrowthinthe communications manager for Dole Fresh ume in excess of existing ripening organic banana sub-category, as long as there is Fruit Co., headquartered in Westlake Vil- capacity, for short- or long-term dura- “available supply.” He warns, “Fungus is a lage, CA, says, “Most large retailers oper- tions, or even to replace antiquated problem because bananas grow in moist trop- ate their own banana-ripening facility, ripening equipment.” ical climates. However, I believe there is latent which provides them maximum flexibility Bananas travel, on average, thou- demand that hasn’t been met secondary to to supply their stores. We have noticed sands of miles after harvest to their final supply. Organic bananas have the potential to however, that many wholesalers and point of sale. “Yet,” says Byrne, “main- represent 15 percent of the overall category.” retailers have either outgrown the capac- tenance of an optimal temperature is ity of their ripening facilities or are con- often broken in the last 60 feet, or in a 3. Sell Ready-to-Eat Ripe Bananas sidering replacing their antiquated retailers’ back room. Bananas do best at Bananas at two different stages of ripeness ripening rooms. Either way, the decision a temperature of 58°F, and many back are offered to customers at Rice Epicurean to augment or replace existing facilities rooms can range from much colder to Markets, says Luchak, “which take advantage with state-of-the-art ripening rooms is much warmer than this.” of today’s and tomorrow’s sales. To accomplish costly and capital intensive.” Thermal Technologies introduced its this, we get delivery from our wholesaler five Volume is a key decision point in a PalletPro a few years ago, which main- days a week.” retailer determining whether it’s benefi- tains a single-pallet of ripe bananas at Consumers are definitely color-driven, cial to self-ripen, says David Byrne, vice optimal temperature and humidity reveals David Byrne, vice president of sales for president of sales for Thermal Technolo- prior to the fruit’s placement at dis- Thermal Technologies, in Blythewood, SC. gies Inc., in Blythewood, SC. “Ripening play. The unit is also labor-saving, “Whenitcomestobuyingbananas,yellowisthe makes sense on many levels such as eliminating the need to uncap, cross- magic word, although there are outliers,”he says. quality control, shrink and costs. How- stack or sort through individual boxes. Christou says, “The trend is to have the ever, for the best return on investment, Byrne says, “Bananas are the No. 1 bananas be 60/40 or 70/30 ripe-to-green, but you should ripen at least three loads of selling SKU in the produce depart- the primary objective is to ship bananas at a bananas per week. That’s because ment, so naturally, it should be a pri- consistent color stage. Displaying color stage 2 whether you ripen one load or three ority to handle them correctly.” pb and 5 will provide consumers with the choice to purchase the product ready to eat immedi- to sell only 50 to 100 cases a week,” he recol- cold as they chill easily.” atelyortohavesomereadyforthenextdays; lects.“Now, we sell all we can get our hands on. Dionysios Christou, vice president of North also, this practice allows there to be a good However, sales of the Niños are down in Janu- American marketing at Del Monte Fresh Pro- product rotation at store level. It is best, how- ary, February and March. That’s because they duce N.A. Inc., in Coral Gables, FL, says,“Con- ever, to have a larger variety at retail, as noth- have a thin skin and don’t do well in the bitter sumers are becoming more aware of the ing can hurt a retailer’s sales more than not

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NOVEMBER 2010 • PRODUCE BUSINESS 101 MERCHANDISING REVIEW

Del Monte’s Christou asserts, “By cross- merchandising, retailers can increase banana sales and sales of related products. Creative ideas for cross-merchandising include pairing bananas with ice cream, strawberries, cereal, salads, chocolate dips and peanut butter. Cross- Expanding specialty merchandising ripe and green plantains with varieties, such as baby cheeses and other typical Hispanic foods like bananas, plantains and guacamole or rice and beans can also create red bananas, will peak additional sales opportunities.” consumer interest and Chiquita’s Stephen recommends, “a sec- lead to higher rings. ondary display in the pharmacy,” which can connect the dots between banana’s potassium having color. For display purposes, the prod- constantly having to re-stock.” content and their frequent prescription with uct should be separated by ripeness stage to “In addition,” says Dole’s Goldfield, some high blood pressure medications. facilitate different consumer choices.” “research has found that secondary displays “The best way to increase sales of the most positioned by the entrance of the store are very highly purchased item in the produce depart- 4. Fill A Niche With Bagged Product effective at increasing impulse sales in the ment,” says Dole’s Goldfield, “is to expand “Bananas merchandised in random weight evening when many consumers run in for a banana consumption in other day parts. clusters are the norm in most of the country,” specific item or two.” Nighttime consumption and grilled dinner says Goldfield,“although random weight bagged Some retailers display specialty bananas and dessert recipes represent the new frontier bananas are still quite popular in the Northeast.” with Cavendish, while others merchandise for bananas.” Dole recently launched its Go Banana Distributor’s Rosenblatt, reports, these fruit in with tropicals such as pineapples Bananas After Dark program to highlight “We sell 100 percent of our bananas bagged. or in the Hispanic section with items that also bananas’ use in nighttime recipes. In the fourth However, this is unique to New York City.” don’t require refrigeration such as chayote, quarter of 2010, emphasis will switch from Bagged bananas have been the preferential way yucca, jicama and chiles. backyard summer grilling to fall tailgating and of merchandising bananas in the New York baked recipes for the holidays. market since the 1970s, Rosenblatt adds. 6. Market By Demographics “Retailers like the bags because consumers will Successful retailers focus on addressing the 8. Go Beyond Price Promotions buy the whole cluster and they are less likely to preferences and tastes of consumers in their Bananas are price-promoted only three to rip the clusters apart. Plus, it makes a neater particular market, notes Del Monte’s Christou. four times a year at Dorothy Lane Markets, says display,”he says. “If we did away with the bags “Retailers should understand their customer Manzano. “We go with an everyday low price here, you’d have to retrain all the retail staff.” demographics in order to stock the banana and don’t typically see an increase in volume “Outside of New York,” says Del Monte’s varieties that are in demand in their region and when we put bananas on sale, so we don’t price Christou,“some traditional grocery outlets will showcase the products effectively,”he explains. promote them too often.” buy and merchandise bagged organic bananas.” “For example, it would benefit a retailer to pro- “The best way to promote bananas,” says mote plantains and manzanos in an area where Chiquita’s Stephen,“is to cause a disruption at 5. Build Appealing Displays there is a high concentration of consumers of the display.” In September, Chiquita ran an Bananas are displayed prominently in the Hispanic origin.” Organic Harvest Month promotion that was front of the produce department at Rice Epi- Beyond this, there is a tremendous oppor- announced to consumers via special blue stick- curean Markets. Luchak details, “The main dis- tunity to market bananas to kids and seniors. ers on each banana. The promotion included play will average 12x12-ft. in some stores or a Christou points out,“The colors, unique tastes an online social media component where cus- 6-ft. end-cap in others.We also have 4-ft. displays and interesting sizes of specialty bananas like tomerscouldvotefortheirfavoritenon-profit in the bakery/deli and another two to three car- reds, manzanos and babies are appealing to organization. Chiquita donated 10 percent of tons in a stand-alone display in the cereal aisle.” kids and offer tremendous opportunities to organic banana sales generated for the month “There are two schools of thought as to increase consumption among younger con- to the chosen organization. where to position banana displays,” discloses sumers and adults who seek variety. Adults and Employing the same promotional tech- Bill Sheridan, vice president of sales and mar- seniorsaremoreinterestedinnutritionalfacts, nique, the 18 winners of Chiquita’s Banana keting for North America at Banacol Market- convenience and pricing, so it is important to Sticker Design Contest will have their works of ing Corp., in Coral Gables, FL. “Some retailers include this information when communicat- art displayed next to the company’s classic blue feel consumers already have bananas on their ing with these groups.” sticker on individual bananas during the shopping list and therefore put the display in month of November.“This kind of disruption the back of the produce department to pull cus- 7. Expand Customers’ Usage Horizons at the display causes customers to stop, look, tomers though, while others place their banana “Nearly over-ripe bananas at Rice Epi- think and purchase,”says Stephen. pb display front-and-center as an image builder.” curean Markets are taken to the bakery where For more information on bananas, please “The right size display is crucial,”says Chiq- they’re used to make banana bread,” says go to www.producebusiness.com uita’s Stephen. “You don’t want too big a dis- Luchak. “We’ll put a display of fresh bananas play that doesn’t generate good turnover, or over in the bakery and sign the bread as made too small that you risk being out of stock or with our bananas.”

102 PRODUCE BUSINESS • NOVEMBER 2010 MERCHANDISING REVIEW Eight Simple Steps to Maximize Peruvian Asparagus Sales Getting back to basics will help retailers build increased profits with Peruvian asparagus. BY JODEAN ROBBINS

Asparagus benefits from being merchandised upright in water, along with complentary items such as lemons.

he explosion in growth and avail- As consumers look for asparagus year- ishability of this delicate product continues to ability of Peruvian asparagus round, Peruvian product is a must-have for plague many retailers. By focusing on a few allows retailers more opportunity many retailers.“Our departments are about 99 simple steps, retailers can be sure their Peru- than ever to build consistent sales percent organic, and asparagus tends to be one vian asparagus program thrives all winter long. in this category. “From a dollar- of the few conventional items we bring in, sim- T 1) Be Careful In The Backroom ring perspective, Peruvian asparagus is great ply because our customers want it,” says Matt for sales and is a driver for many other prod- Landi, produce director for New Leaf Com- How asparagus is handled in receiving and ucts in the store,” says Paul Kneeland, vice munity Markets, a six-unit chain headquar- backroom storage can greatly affect the quality president of produce and floral for Kings tered in Santa Cruz, CA. “This shows the oftheproduct.“Asparagusmustbekeptcoldto Super Markets, a 25-unit chain in Parsip- importance of the product to our customers ensure the best quality,” says Julia Inestroza, pany, NJ. “The increasing consistency of the and our stores.” marketing director for Gourmet Trading Com- product in both availability and quality has According to USDA statistics, Peru now pany, headquartered in Los Angeles, CA. led to increased sales.” represents more than 55 percent of fresh “Holding at 34°F is ideal.” “Fresh asparagus from Peru continues to asparagus imports.“Currently, Peru is the lead- “Temperature is extremely important, so gain popularity with retailers and consumers ing supplier of imported fresh asparagus to the makesuretheasparagusiskeptat34to36°F because of its increasing availability and U.S. market,” says Priscilla Lleras, coordinator degrees,”agrees Gary Meadows, sales and mar- consistently improving quality,” points out for the Peruvian Asparagus Importers Associ- keting manager with Progressive Produce John-Campbell Barmmer, director of mar- ation (PAIA).“Year after year, Peruvian aspara- Corp., in Los Angeles, CA.“It is also extremely keting at Chestnut Hill Farms, headquar- gus has a proven record of yielding steady important to rotate all new shipments.” tered in Miami, FL.“These two factors make quality production. This is a huge benefit to the In addition to cold-chain maintenance, Peruvian fresh asparagus a natural for pro- United States because it helps the market pro- retailers want to be on top of moving product motion at price levels that continue to con- vide consistent, steady availability, which out of storage as soon as possible and check- tribute positively to the produce increases consumption.” ing it for quality.“Product shouldn’t sit long in department’s profitability objectives.” Despiteitssuccessinpopularity,theper- the backroom,” warns Kneeland of Kings.

NOVEMBER 2010 • PRODUCE BUSINESS 103 MERCHANDISING REVIEW

“Retailers who have promoted 5) Cross-Merchandise With Creativity Asparagus presents a wealth of cross-mer- both white and green asparagus at the same time chandising opportunity beyond the traditional have seen huge increases in sales — not just hollandaise sauce. Link it to items both in pro- duce and outside the department. “Meat and on the week of promotion, but also in the weeks seafood are great with asparagus as a side dish following on white asparagus sales.” so cross-merchandise in those departments,” says Meadows.“Asparagus merchandised with — Julia Inestroza, Gourmet Trading Company other vegetables, such as artichokes, makes for a great display.” “Keeping it cold is crucial, as well as stacking it ity of the asparagus, but also the visual appeal “Asparagus helps sell roasts, chicken and properly so the tips don’t get crushed. We’re of an upright bunch of asparagus.” seafood,” asserts Kneeland. “We merchandise also conscious to keep it away from dripping “Never display asparagus on its side,”agrees it all over the store with good results.” water or other harmful external factors.” Charlie Eagle, vice president of business devel- Encourage store personnel to be creative in “If you have it any more than 24 hours, opment for Southern Specialties in Pompano building cross-merchandising programs. “We you want to think about trimming the bot- Beach, FL.“We suggest standing asparagus in a love putting it in a grill display,”reports Landi toms,” suggests Landi. “You also must be on small amount of water. Let the consumer know of New Leaf.“We display it on an ice table near top of the tip rot that can sometimes happen to trim the ends before cooking.” other items that are suggestive for grilling. and pull those out. It’s especially important Asparagus definitely benefits from being We’ve also created a meal solution center with in asparagus to be aware of any decay and cull displayed in water, but retailers must ensure ice tables to combine different products it immediately.” any use of water is appropriately maintained. together. We like to put it with artichokes. The “Not keeping the asparagus hydrated or fresh is shape distinction creates a nice look.” 2) Give It Prominence a big mistake,” says Meadows of Progressive “Great cross-merchandising items include Asparagus is a product you want customers Produce. “However, if you’re using water, the parmesan cheese and balsamic vinegar,” says to easily see. “An important consideration for water needs to be changed daily. Fresh aspara- Eagle of Southern Specialties. “They pair well merchandising asparagus is to put it in a gus displays are very appealing and signifi- with asparagus.” prominent place,” says Kneeland. “Build a big cantly increase impulse purchases.” Suppliers are coming up with unique display and promote it.” “This is retailer- and location-specific as cross-promotions as well. “We are doing a “Size of display is very important,” adds some states have laws regulating this,” reports cross-promotionwiththeDVDreleaseofEat New Leaf’s Landi. “If you’re going to carry it, Inestroza.“However, if possible, the asparagus Pray Love,” explains Gourmet Trading’s Ine- you want to give it some real estate.” should be displayed in water that is changed stroza. “Our tags for green asparagus, as well Moving displays and placing them in frequently.” as our white asparagus wraps, will have a call- unique areas will also help keep the product out for $4 off the DVD by mail with the pur- foremost in customers’ minds. “Don’t hide it 4) Use Wet Rack With Care chase of two pounds of Gourmet Trading behind other products,”says Kneeland.“When While misting may provide hydration asparagus. We are hoping this will increase we promote asparagus, we increase the size of benefits, retailers should be cautioned about sales at the retail level by encouraging the pur- the display and put it right at our front doors.” using it without strict oversight. “Misting chase of not just one pound of asparagus, but “Location is crucial,”agrees Meadows.“Put asparagus can lead to premature tip decay,” two. The timing of this promotion is Novem- displays where customers are going to most explains Inestroza. ber 25th through December 15th, which easily see them. Use water or wet pads and side “Misting has advantages in the area of should help increase sales in the period stacks. Also, make sure the display is well kept keeping the product hydrated,” acknowl- between Thanksgiving and Christmas.” and looks fresh.” edges Meadows.“However, retailers who are However, stores should be conscious of misting must be sure to use very vigilant 6) Consider Variety environmental factors affecting quality. “You culling techniques. Otherwise, the misting Adding variety through color options can have to be careful when you put the display will counteract their good intentions by help increase sales in some markets. “White together that it’s not under a heating duct,” leading to tip decay.” and green asparagus promoted together and points out Kneeland. “Or, if you’re putting it Kings’ Kneeland reports,“We do sometimes priced the same has been successful,”says Pro- by the front door in cold climates, you also put asparagus on the wet rack due to space gressive’s Meadows. have to watch the temperature coming in from constraints. But we’re always very careful about “Promotion of green and white asparagus the outside.” the quality and rotation, and we have designed together can help drive sales,” adds Inestroza. some special stands to ensure the product is “It takes little extra effort to include both in ads 3) Display It Correctly displayed correctly.” and on display, yet the potential for doubling The space crunch many retail depart- Rotating and culling displays, no matter sales is huge. Retailers who have promoted ments face often leads to unfavorable and where they are, are crucial to sales. “Typically, both white and green asparagus at the same damaging merchandising of asparagus.“The the biggest mistake stores make is leaving aged time have seen huge increases in sales — not biggestmistakestoresmakeisdisplayingthe stuff out there too long,” says Kneeland. “One just on the week of promotion, but also in the asparagus laying down,”says Gourmet Trad- badbunch,orevenafewtipsinadisplay,can weeks following on white asparagus sales.” ing’s Inestroza.“It’s not only bad for the qual- turn away customers.” Retailers can also look at the growing num-

104 PRODUCE BUSINESS • NOVEMBER 2010 ber of value-added asparagus products such as agement issues, which eventually could help to import services are key and we’ve responded packaged tips and steam-bags to add variety to reduce or eliminate fumigation,” reports by offering importers a per-box-rate for the category. “The growth of creative packag- Meadows of Progressive. asparagus, including customs entry, fumiga- ing has contributed to increased shelf-space in “Peruvian asparagus importers are work- tion, local delivery, overtime and coordina- many retail organizations,” says Barmmer of ing more closely with customs brokers spe- tion. We want to streamline the overall Bounty Fresh.“Consumer-friendly unit sizing cializing in the import clearance of fresh import process and ensure that shipments are and volume has enabled more consumers to asparagus,”says Nelly Yunta, general manager cleared with no delays.” purchase asparagus because a 1-lb. bunch is for Customized Brokers, located in Miami, Retailers are encouraged to remember their simply too much for many consumers to pur- FL.“This closer relationship helps ensure that own valuable contribution to expertise as well. chase at one time.” theproductreachesstoreshelvesasquicklyas “Educate the man on the floor,”suggests Eagle. However, success is variable as many stores possible and at its peak of freshness. Speed, “A trained produce professional is your best still struggle with selling anything beyond the convenience and competitive pricing for these resource for promoting product.” pb standard bunches. “We’re still at the stage in this market where colored asparagus and value-added are specialty items,” says New Leaf’s Landi.“We have our token cases, but it’s atoughsell.”

7) Make The Most Of Signs Eye-catching informative signs can encour- age purchases. “Signage can really contribute to product movement,” says Meadows. “Recipes can help give great ideas to consumers and increase impulse purchases. In-store announcements can also create extra sales.” Signs should do an effective job of covering the basics, but also are a means to help con- sumers better understand the product.“We do basic signage, but when we advertise we make bigger signs,”says Kings’ Kneeland.“We like to tell a story about the grower, nutrient value or usages on our signs. You need to make the mostofthe10secondsyouhavecustomers near your display, and effective signage is a big part of that equation.” “Since the product is well known, signage should be clear and cover the basics like price and country-of-origin,” says Landi. “Signage can help better educate consumers and make a connection with them. For example, we find it helpful when there is information relating to fair trade or a farmer profile.”

8) Tap Into Industry Expertise Peruvian growers and their exporters are continually seeking ways to improve the busi- ness. “The growth opportunities for Peruvian fresh asparagus are very positive and we are committed to working with our grower and trade partners to increase consumption of Peruvian fresh asparagus,”says Barmmer. “Southern Specialties is making invest- ments in optimizing the handling of aspara- gus,” reports Eagle. “This includes things like additional hydro-coolers, forced air coolers and air scrubbers.” Importers are increasingly focused on greater efficiency in logistics. “There is a lot of USDA support in Peru to help with pest man- Reader Service # 74

NOVEMBER 2010 • PRODUCE BUSINESS 105 DRIED FRUIT & NUTS Holiday Baking With Dried Fruit And Nuts Moving beyond the traditional holiday fruitcake, dried fruit and nuts find a promotable place among holiday ingredients. BY JON VANZILE

Calling maximum attention to dried fruit and nuts will lead to impulse purchases and higher rings.

ack Harris, produce manager of Marvin’s andnutseasonisthedisplay.Theideaistocall themsoyoucangetasmuchbangforyour Food Saver, an independent retailer in In- maximum attention to the dried fruits and buck as you can.” dependence, KS, knows how to put to- nuts and offer other baking-related items, such You can do this by offering suggestions and gether a holiday display of dried fruits as candies, flour, sugar and decorations. A ideas right at the table, including tear-away Jand nuts. He’s so good at it that he re- complete display should include raisins, figs, recipes and pictures of baked goods using cently won an award for his display of peanuts dates, as well as a complete selection of nuts, dried fruits or nuts. For example,Virginia-Car- from Nashville, NC-based Virginia-Carolina apricots and dried cherries. olina Peanut Promotions offers recipes for Peanut Promotions. “I used bulk peanuts,” A good display will do more than help bak- peanuts including sugar-coated peanuts or Harris remarks. “Bulk peanuts increase sales. ers find everything they need in one place. It peanut brittle, and most large producers also It’s the size of the bin that is so attractive.”The will also help increase sales of others products offer recipe cards or sheets for their products. display used POS material provided by Vir- because dried fruit and nuts are largely impulse At Marvin’s Food Saver, Harris has used a ginia-Carolina Peanut Promotions, but was purchases. Shoppers routinely buy dried fruit similar display every year to bring customers customized by the local football team’s colors or nuts on the spur of the moment, in addition to his produce department. He runs the display and logo. to those needed for baking ingredients. from the first week of November — just after But Harris doesn’t stop with peanuts during “History has taught us that when dried fruit the Halloween candy is pulled from the shelves the holidays.All across the country, produce ex- is merchandised, it really makes sense to use —intoDecember.“Welaytheproductboxes ecutives are gearing up for a traditional holiday the market-basket approach,” notes Joe Tam- on a slant on a table, and I’ll have them all to- spike in all dried fruit and nuts. Traditionally, ble, vice president of sales for Kingsburg-based gether,” he describes. “It makes a nice display. dried fruits and nuts are used as baking ingredi- Sun-Maid Growers of California. “Dried fruit We’ve had them every year since we opened up, ents for cookies and in religious holidays, but in is really an impulse purchase, and a consumer and I wait every year for the holiday nuts and recent years, the market has expanded to include might not think of an apricot while they’re candies. They start in November and carry us health-conscious consumers and foodies. The looking for raisins until they get to the display.” through because they average around five key, say retailers and distributors, is to maximize The same can be said for other dried fruits. bucks a ring.” sales through proper merchandising. “Dates and figs are often used during the hol- Other displays are more intricate.“The best idays,” says Lorrie Cooper, manager of the table I ever saw included a banner that was The Display Indio-based California Date Administrative strung straight from the ceiling to the center of The heart of a successful holiday dried fruit Committee (CDAC). “You want to bundle the table,” recollects Andrew Stillman, presi-

106 PRODUCE BUSINESS • NOVEMBER 2010 dent of Amport Foods in Minneapolis, MN. “Both Jewish and Muslim holidays use dried Passover, is developing into a mini-spike for “Then, they decorated the banner with all sorts fruit,”notes Shaleen Heffernan, sales manager sales. “During these months, fresh produce is of holiday symbols. It caught the eye and said, at Mor USA in Green Brook, NJ. “Muslims limited,” points out Stillman, “so people are ‘Holiday Baking Center.’Stores used to do this, have a month-long fast at Ramadan, where looking for additional tasty and nutritious but they moved away from it. Now, however, they fast daily from sunrise to sunset and break items.” they are moving back.” the fast with a date.” Even beyond these dates, more and more Ideally, recipes offered at the baking table produce departments are keeping a year-round should include at least two ingredients from Stretching the Holiday Season display of dried fruits and nuts. After all, their the table, Stillman advises, adding that many Although the traditional holiday season nutritional and culinary benefits don’t end vendors are happy to supply recipe cards, so from November to December generates the with the New Year, and most producers are re- there’s no cost to the store. strongest sales, producers note that the spring porting steadily increasing sales of dried fruits Samples can also be used to increase sales. holiday season, which includes Easter and throughout the year. pb “Cornell did a study on 22 promotion tech- niques and sampling ranked third,” reports Betsy Owens, executive director of Virginia- Carolina Peanut Promotions.“The old saying, ‘No one can eat just one,’ is true.”

Advantages to Dried Fruits and Nuts Retailers such as Harris love holiday baking displays because they are profit centers for the store. According to producers like Stillman, dried fruits and nuts are the most profitable sin- gle items in the produce department. They are labor-free once the shelves are stocked, and they boast much better margins than most produce. When it comes to the specific SKUs within the category, raisins are by far the biggest seller, even during the holiday season. According to Sun-Maid’s Tamble, sales of the standard 24- oz. canister are especially strong through No- vember and December. Nuts, too, are popular, as consumers tend to prefer walnuts, pecans and other nuts typically used in baked goods. Finally, the rest of the dried fruits — especially dates and figs — are popular. In addition to marketing to bakers, the hol- iday season is a good excuse to put dried fruit and nuts in front of health-conscious con- sumers and raise their awareness of the health benefits. After all, dried fruit is loaded with nu- trients and antioxidants. “Our figs have more fiber than prunes and more potassium than bananas,”reports Linda Cain, vice president of sales and marketing at Valley Fig Growers in Fresno, CA.“They are chock full of nutrients.” The same can be said for dates — also loaded with potassium — and most other dried fruits, which deliver a nutritious punch in a small package. In fact, CDAC’s Cooper rec- ommends placing chopped dates on the holi- day table and reminding consumers they are an excellent sugar equivalent. Beyond baking, many religions consume dried fruits as part of their holiday observation. This includes Muslims, who use dates during the Ramadan fast. Many Jewish tables are dec- orated with the traditional fruits and foods from Israel, which also include figs and dates. Reader Service # 62

MONTH 20xx • PRODUCE BUSINESS 107 FLORAL & FOLIAGE MARKETING The Mother of All Bouquet Seasons With 2011 offering a late Easter, floral bouquet companies encourage retailers to order early for spring holidays. BY BOB JOHNSON

The accepted price for floral PHOTO ABOVE COURTESY OF FARMERS’ WEST bouquets this year has CENTER PHOTO COURTESY OF FIORRE FARMS LLC PHOTO AT RIGHT COURTESY OF FRESH BLOOMS dropped from $14.99 to $12.99 and even $9.99, according to floral experts.

ne of the busiest floral seasons in ers’ needs in this challenging time is to give president of World Flowers LLC, located in recent years will happen this them a little flexibility in the mix of bouquets Doral, FL. “There is going to be a shortage spring when Mother’s Day will they deliver.“Pre-book early and give your sup- fairly soon.” He expects the shortage to hit as be celebrated just two weeks after pliers some flexibility in the mix in the bou- early as Valentine’s Day. OEaster. For floral department quets,” advises Linda Giovanozzi, vice The shortage could very well affect roses, sales, the timing is opportune, but there are president of sales and product development at which are a Mother’s Day staple. “Carnations concerns about setting up POP materials in Farmers’ West Flowers and Bouquets, based in were cut back first, but roses are also tightening time and dealing with possible inventory Carpinteria, CA. She suggests getting orders in up a little bit,” says Farrell. “For many years, shortages. Growers and bouquet distributors byJanuaryatthelatest. therehavebeenrumorstherewouldbea all agree that one thing retailers can and must Declining production in Colombia could flower shortage, and then it didn’t happen. I do is place their orders as early as possible. further complicate the issue of floral supply for wouldn’t be surprised if a lot of people don’t Although there is no hard rule about when two holidays so close together. “The exchange believe it this time. Nonetheless, I’m hearing to order, some retailers begin planning with rate in Colombia has reached a point where it from South America that there’s a good 35 per- their suppliers as early as a year in advance. is killing the growers if they are exporting out,” cent cutback in production.” “For our major customers, we work six to 12 remarks Charlie Alvarez, director of sales and The uncertainty of supply makes it even months out on all holiday planning. Retailers marketing at Fiorre Farms LLC, headquartered more essential for retailers to tell floral growers generally survey their stores immediately after in Miami, FL.“A lot of farms in Colombia have and distributors now what they will need in the the holiday to gather order projections for the either gone out of business or reduced their spring. “I recommend a minimum of six following year, providing the data for what sold acreage. The supply is now diminishing and months,”advises Alvarez.“This allows the farm and what did not at each price point and what that’s why the prices are going up.” to plan to produce enough to cover their or- the stores need, based on actual sales history. It The so-called crisis in supply could extend ders. It is really important for the retail market helpsifthesesurveysaredoneclosetothehol- beyond Colombia to many of the other major to plan in advance for their needs, especially iday that has just passed,” says Karen Leggett, flower producing areas of the world. “I’m get- since supply has reduced and there is less prod- sales and marketing services at Sunshine Bou- ting reports from South America, Kenya, uct available at the last minute.” quet Co., in Dayton, NJ. Switzerland, Holland and Japan that the supply This past summer, the largest retailers were Another way to help suppliers meet retail- is going to decrease,” reveals Joseph Farrell, already booking their floral orders for next

108 PRODUCE BUSINESS • NOVEMBER 2010 California Bloomin’ California flower growers are preparing for spring and they seem to have fewer uncertainties than South American growers. “People are familiar with the quality of the flowers coming out of California,” recognizes Kasey Cronquist, CEO and am- bassador of the California Cut Flower Commission, in Carpinteria, CA. “We are always introducing new varieties, because we try to stay ahead of the curve, and I am sure we will introduce new varieties again this spring.” The so-called crisis is South American flower production has — if anything — cre- ated new opportunities for cut flower growers in California. “There seem to be more openings for California-grown product,” says Linda Giovanozzi, vice president for sales and product development at Farmers’ West Flowers and Bouquets, based in Carpinteria, CA. “California production is consistent and increasing slightly. For us, there will not be a shortage; we will plan for that time of the year. We will set our plants to flush toward the end of April and the beginning of May.” “The California supply is strong,” says David Clark, director of sales and mar- keting at Fallbrook, CA-based Kendall Farms, which also specializes in protea, sun- flowers and eucalyptus. “I can really only speak for us, but every year we’re increasing the amount of product that is available. We’re one of the largest suppli- ers of pincushions, and the largest supplier of wax flowers in the country.” Kendall Farms is offering pre-booking pricing on select flowers until December 1st, in an effort to encourage buyers to submit their orders well before the spring holi- days. “A lot of growers are not growing on spec as much as before because of the economy,” explains Clark. “Tulips are becoming the No. 2 SKU in the stores behind roses, and iris is run- ning ahead of schedule,” says Ginny Wyche, mass marketing and Internet sales manager at The Sun Valley Group, based in Arcata, CA. Sun Valley specializes in spring flowers, including tulips, iris, hyacinth and lilies. “We source flowers out of California such as VeriFlora-certified sustainable lilies and irises,” says Robert McLaughlin, CEO of Organic Bouquet/EcoFlowers.com, lo- cated in Maitland, FL. Retailers who source their flowers largely out of California are less anxious than most about supply issues in spring. “I don’t foresee any supply problems because we get 85 percent of our flowers from local growers in San Diego, Oxnard and Carpinteria,” says Alice Hosepian, floral marketing director for Bristol Farms, a chain of 13 California supermarkets, based in Carson, CA. pb

spring. “We are working to pre-book our or- Sewell, NJ-based Fresh Blooms.“Easter has pri- ders to ensure an adequate supply for our cus- marily been a plant-driven holiday, while tomers for both Easter and Mother’s Day,”says Mother’s Day is for bouquets.” Mike Siemienas, national media representative The economy has created an atmosphere for Supervalu Inc., based in Boise, ID. “We try that will influence the flowers people buy next to stay on top of that on a regular basis.” spring.“It’sgoingtobebrightcolorsbecause bright colors make people feel cheery,” Quinn Something Old And Something New says. Most consumers are also going to be look- There are strong traditions that still go a ing for bouquets at a lower price point than in long way toward dictating what is appropriate the past. “People are going to be looking for for Easter and Mother’s Day bouquets.“Pastels color and value. The most common price used andgreenstendtobepopularforEaster,”notes to be $14.99; that has moved down to $12.99 Giovanozzi. “Mother’s Day is still very heavy and even $9.99,”she adds. with pink. We’re seeing more people go to There is, however, another group of con- greens, but pink is still traditional.” sumers that continues to buck the mainstream Some of those traditions may help ease the by paying a little more as part of their invest- supply crunch, as different gifts are traditional ment in a sustainable lifestyle. “We have a for the two holidays. “I’m not sure the close- heavy emphasis on organic flowers; organic ness of the two holidays is going to be a con- roses will be a good item this year,” predicts cern,” discloses Rene Quinn, vice president of Robert McLaughlin, CEO of Organic Bou- Reader Service # 77

NOVEMBER 2010 • PRODUCE BUSINESS 109 FLORAL & FOLIAGE MARKETING quet/EcoFlowers.com, located in Maitland, FL. thepossibilityforastrongfloralseasonnext Planning the POP displays in advance could be The market for organic and sustainably grown year including Palm Sunday, Passover, Easter, as important in driving sales as securing floral flowers is made up of consumers interested in Administrative Professionals’ Day, Cinco de inventory in advance. “We have an extensive lifestyles of health and sustainability, a rela- Mayo and Mother’s Day. line of POP materials. One of the key tasks for tively affluent group estimated at nearly 20 “It’s going to be an amazing four weeks of retailers to do is engage the consumer. People percent of the adult population. “They are floral sales,” Strom continues. Strom is rela- don’t know a lot about flowers and that can be more focused and less price-sensitive con- tively calm about the supply issues because he intimidating. We need to turn people into sumers. This group is still growing through the has worked to build close relationships with flower connoisseurs,”Wyche explains. down economy,” McLaughlin explains. Or- his suppliers. “We call our suppliers trade This promotional effort is worth planning ganic Bouquet has seen its online sales drop 7 partners,” he states. “They come into our months before the holidays arrive. “We start percent this year, but that has been offset by a closed-door meetings. Many of them have planning our POP for Mother’s Day and Easter substantial increase in business-to-business been in every one of our 128 stores. They are and order our materials right after Valentine’s sales through its EcoFlowers.com.“We ship to our eyes and ears on merchandising and serv- Day,” reveals Alice Hosepian, floral marketing Whole Foods and to a number of natural food ice. Our word as a floral buyer is reliable. We director for Bristol Farms, a chain of 13 Car- store chains with 5 to 25 stores,”he adds. give our trade partners our orders early; we son, CA-based supermarkets. In addition to don’t change our order at the last minute; and implementing the POP materials developed to Opportunity Blossoms we pay quickly.” enlighten consumers, retailers must be pre- The crowded floral schedule coming in the Another challenge in 2011 will be changing pared for a labor crunch in the floral depart- spring of 2011 also brings an unusual oppor- the POP displays in the short time between ment. “The only problem I foresee is a lot of tunity.“We are excited that Easter is so late next Easter and Mother’s Day. “I think we’ll have tired employees,” she says. “It’s hard to have year,”declares Jon Strom, vice president for flo- plenty of product,” says Ginny Wyche, sales enough employees available for so many floral ral and lifestyle merchandising at Price Chop- manager for mass marketing and Internet sales holidays in such a short timeframe. For per Supermarkets, Schenectady, NY. “Having at The Sun Valley Group, headquartered in Ar- Mother’s Day, we can borrow employees from Easter in late April will bring a lot more out- cata, CA.“There won’t be a problem as long as other areas of the store; but for Easter the en- side business than if it were earlier.”Strom sees retailers address the POP issues in the stores.” tirestorewillbebusy.” pb

FLORAL WATCH

TRANSITION ANNOUNCEMENT NEW PRODUCTS

RIVERDALE FARMS 2010 FLORAL MARKETER OF SHORT AND SWEET FLORAFRUIT APPEAL MIAMI, FL THE YEAR The Sun Valley Group, Arcata, The USA Bouquet Co., Miami, Manny Fraga is the newest ad- The Produce Marketing Associ- CA, introduces its line of Table- FL, introduces the Florafruit dition to the grower/distribu- ation, Newark, DE, named Bill top Bouquets featuring fresh program as part of the com- tor's Mass Market business Byland the 2010 Floral Mar- California-grown flowers. Meas- pany's new mixed floral bou- unit. He previously worked in keter of the Year during PMA’s uring approximately 8 inches quet line. Featuring large, mass market sales for Great Fresh Summit International tall, the Upscale Bouquet ar- medium and small bouquets, American Bouquet, Sunshine Convention and Exposition rives in frosted glass cubes. the fruit-inspired line is ideal Bouquet and on the wholesale held in Orlando, FL, in October. The taller Tabletop Bouquet for cross-merchandising with side with CFX. Fraga's most re- Byland is business manager of measures approximately 14 items from the produce depart- cent post in his 14-plus years Micky’s Minis Flora Express, in inches tall. These hand-tied ment. The Floralfruit program in the industry was with Falcon St. Louis, MO. Presented since bouquets are available with includes Tropical Paradise, Or- Farms. 1981, the award recognizes an vases or can be matched with chard Delight, Citrus Punch outstanding floral professional vases in retailers’ existing in- and Very Berry (pictured who has served the mass-mar- ventory. These beauties are above). Signage and POP ma- ket floral industry with dedica- ideal for desktop décor and as terial is offered with the Floral- RSN 338 tion and distinction. RSN 339 hostess gifts. RSN 340 fruit. RSN 341

110 PRODUCE BUSINESS • NOVEMEBR 2010 RETAIL PERSPECTIVE TRUST IS THE CORNERSTONE OF TRACEABILITY

he level of trust when dealing with with major shippers, it is equally necessary for retailers to meet with used car salesmen, politicians, per- their smaller local growers to determine potential solutions. T sonal injury trial lawyers and financial Ultimately, PTI may play a major role in altering small producer advisors is relatively low in most of the pub- distribution systems. Some may easily adapt individually to the pro- lic’s perception. On the other end of the scale, gram. Others may combine shipping programs or sell out to a major the trust in the majority of the attributes of shipper who more efficiently implements the program. fresh fruit and vegetables is outstanding. However,mythsstillaboundaboutthenetcostsofinvolvement Then on September 14, 2006, public per- with the program. Mark Shuman of Shuman Produce, a Georgia- ception quickly turned into skepticism with based onion shipper outlined the requirements as they develop trace- the spinach recall as it seemingly took forever ability at the shipper level. First, it must become a company culture to determine where the problem originated. Was it isolated or was it with everyone buying into the program. Traceability is as good as the general? Was it at the point of production, processing, shipping, whole- weakest link, requiring complete cooperation and commitment sale or retail handling? Enhanced by media, governmental politicos and regardless of position. As with any new program, the learning curve an irate public, product historically recognized as good by nearly every- includes a lot of trial and error. The system has developed accurate one was in the questioning crosshairs. Trust had disappeared. data labeling, improving turnover and the ability to supply receivers The damage brought unin- according to their specification tended consequences, destroying requirements. As a result, the sys- the incomes of innocent produc- The system of traceability not only tem of traceability not only ers and workers just because there inspires a greater trust with busi- was no way to quickly isolate the inspires a greater trust with business ness partners, but more consis- cause. The question went from partners, but more consistent tent business helping to offset what do we do now, to how do we business helping to offset the cost of the cost of implementation. do it, to how to compensate for Trust becomes a business insur- the cost, to how do we renew implementation. Trust becomes a ance policy. creditability with the consumer? business insurance policy. Requirement changes nearly Changing attitudes comes always spawn business opportuni- slowly, and in the process, inno- ties for organizations with the vation and out-of-the-box think- expertise to provide efficient cost- ing is needed for successful solutions. Initial reactions to PLU labeling, effective solutions and aid the implementation of programs needed by palletizing and clamshell packaging and handling were just a few that companies involved in traveling uncharted waters. Several are in the busi- had met with comments from “it just won’t work” to “the costs are ness of customizing traceability programs helping buyers and suppliers unrecoverable.” However, technological improvements, cost efficien- meet the compliance requirements both more quickly and cost effectively. cies and offsetting advantages brought about new ways of operating. After Food Lion’s initial involvement with the development of the Soon, the Produce Traceability Initiative was born, headed by Kathy PTI process, it is not surprising that on the retail side the company is Green, former vice president of merchandising at Hannaford and cur- well on its way to achieving a high degree of implementation. Already, rently president of Food Lion, completing a workable plan outline with Food Lion has GTINS for 80 percent of the volume as a result of timeline before the end of 2008. emphasizing cooperative traceability with its suppliers. Since then, slow and steady progress has been achieved as more and To keep the program moving forward, the company has project more companies from all segments of the distribution chain become teams concentrating on both procedural and technical elements with a involved. Unfortunately, there are those — perhaps rightfully — rais- total five-year budget in the seven-figure range. Sounds like a lot of ing the question,“What will happen when reality sets in and buyers find money until cost savings generated by rotation, handling efficiencies, non-PTI shippers offer product at a slightly lower cost?”A recent South- security and accountability are included. However, the bottom line east Produce Council conference workshop went a long way toward out- comes from the rewards of consumer trust. lining offsetting benefits to the cost of implementing the program. For the company’s suppliers, nothing may be more important than Perhaps the challenge is for receivers and grower/shippers working the trust they will have from Food Lion management direction to their together to understand each other’s needs for executing the program. buyers which explicitly state, “no purchasing from sources without a Letters from retailers to vendors outlining the requirements to be met traceability program.”Any additional program cost is insignificant com- is not a substitute for face-to-face discussions. In addition to contact pared to the cornerstone gains from consumers’ and suppliers’ trust. pb

By Dave Diver Davei Diver is the former vice president of produce at Hannaford and a regular columnist for PRODUCE BUSINESS.

NOVEMBER 2010 • PRODUCE BUSINESS 111 EUROPEAN MARKET GLOBALGAP VERSION 4 HAS EUROPE AND U.S. MOVING CLOSER TOGETHER ON FARM CERTIFICATION

lose to 500 delegates from 60-plus coun- requirement. In addition, a guideline and toolbox was developed to pro- tries gathered for GlobalGAP Summit vide the producer with more information on how to implement IPM, and C 2010 at London’s Hilton Metropole is expected to help increase worldwide producer involvement in the prac- Hotel, this past October 7-8. The event pro- tice of Integrated Pest Management. vided a unique networking opportunity for all those involved in primary production and Use Of Plant Protection Product (PPP) retailing, stimulated by 55 expert speakers cov- The topic of PPP Residue Analysis has been under discussion for quite ering key aspects of Good Agricultural Practice some time now. For this reason, a new approach has been adopted in Ver- Implementation and their certification. sion 4. Rather than require sampling for residue analysis as a routine The Summit 2010 also marked a special measure, it should be based on risk. This means that the producer is milestone in GlobalGAP’s history, being the organization’s 10th global con- required to have a good understanding of the risks leading to the ference as well as the launch of the fourth version of its Integrated Farm exceedance of Maximum Residue Levels. To this aim, a toolbox to facili- Assurance Standard, after having reported to account for more than tate a meaningful risk assessment is now available. If no samples are 100,000 certified producers in over 100 countries. taken, the producer is required to justify the reasons for this based on his risk assessment. If samples are taken, the producer must follow the set Changes In Version 4 requirements. With this new Although often seen as a European approach, GlobalGAP has taken standard, since the majority of another step to improve food safety imported fresh produce to Europe With its fourth version, the organization without putting unnecessary bur- has to meet GlobalGAP require- has been addressing the risks that cursed den on the producer. ments, with its fourth version, the the recent fresh produce food safety To cover all applications of organization has been addressing chemicals to the products, a new the risks that cursed the recent outbreaks in the United States. control point has been introduced fresh produce food safety out- that requires records of all other breaks in the United States With substances, aside from fertilizer specific updates, which have been and plant protection products. the result of a four-year consultation process, GlobalGAP hereby strength- Changes in the Fruit and Vegetable Module include a new major ens its position as the global harmonization platform for farm assurance requirement for a risk assessment for water used for spraying plant and recommends itself to be the standard of choice also for imports into protection products. The aim is to reduce the risk of microbiological the United States. contamination. All modifications and measures are aimed at increasing the integrity of the standard, thus enhancing transparency for producers, traders and Harvest retailers, and being more applicable to all types of production. Following the principle adopted by other parts of the standard of first conducting a risk assessment, then establishing a procedure and finally Irrigation training the workers according to this procedure, a documented hygiene Water use has become an increasingly important issue in many coun- procedure for the harvesting process has now been implemented. tries. To reflect this concern, Version 4 now raises the level for the justifi- cation of the used irrigation method to a major requirement. In addition, Produce Handling the wording of some control points was revised. All the requirements con- The use of ice for harvested produce was raised to a major require- cerning irrigation are now centralized in the Crops Base Module. ment in order to acknowledge the potential danger. Short-term storage is now covered under field harvest. A new control point covers the require- Integrated Pest Management (IPM) ment for potable water being used for post-harvest treatments. IPM became more prominent in Version 3 and has gained considerable All in all, the microbial risks predominantly addressed in the United significance in Version 4. Efforts to underline the importance of this aspect States have found a full recognition in GlobalGAP’s new version, while of Good Agricultural Practice has led to obligatory compliance against a the original strengths in the areas of pesticide control and baseline sus- minimum of one activity in each of the areas of prevention, observation tainability have been maintained, following greater efficiency and and monitoring and intervention, raising this to the level of a major integrity. Both worlds have moved closer now in farm assurance.

By Dr. Friedrich Luedeke Crops & Training, GlobalGAP, Cologne, Germany

112 PRODUCE BUSINESS • NOVEMBER 2010 INFORMATION SHOWCASE Receive supplier information fast using the Produce Business Information Showcase. Here’s How: 1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the NOVEMBER 2010 Reader Service (RS) numbers that correspond to the ad and the information showcase. 2) Contact the advertiser directly via the Website, e-mail, phone or fax listed in the ad. COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX A & L Potato Company, Iinc...... 56...... 34 ...... 800-365-5784 ...... 218-773-1850 Idaho-Eastern Oregon Onion Promotion Committee ...... 81 ...... 15 ...... 208-722-5111 ...... 208-722-6582 A&A Organic Marketing, Inc...... 60...... 65 ...... 831-768-0300...... 831-685-0302 J J Jardina Company, Inc...... 72 ...... 13 ...... 404-366-6868...... 404-366-1386 Albert’s Organics ...... 61 ...... 18 ...... 800-899-5944 ...... 610-388-8418 JAC. Vandenberg, Inc...... 101...... 44 ...... 914-96-5900 ...... 914-964-5901 Apio, Inc...... 51...... 52 ...... 800-454-1355 ...... 805-343-6295 Kern Ridge Growers, LLC ...... 60...... 48...... 661-854-3156...... 661-854-2832 Asociacion Mexicana de Horticultura Protegida A.C...... 38...... 33 Keystone Fruit Marketing, Inc...... 36...... 72 ...... 717-597-2112...... 717-597-4096

Associated Potato Growers, Inc...... 58...... 25 ...... 800-437-4685...... 701-746-5767 Lakeside Organic Gardens ...... 61 ...... 41...... 831-761-8797 ...... 831-728-1104

Blue Book Services ...... 67...... 4 ...... 630-668-3500 ...... 630-668-0303 Tom Lange Co...... 30-31...... 28 ...... 217-786-3300...... 217-786-2570

Booth Ranches, LLC ...... 93 ...... 17 ...... 559-626-4732...... 559-626-4818 LGS Specialty Sales, Ltd...... 7...... 37 ...... 800-796-2349...... 718-542-2354

Botanical Interests ...... 109...... 77 ...... 800-486-2647 ...... 303-464-6468 Litehouse Foods, Inc...... 65...... 50 ...... 800-669-3169...... 208-263-7821

Brooks Tropicals ...... 43...... 23 ...... 800-327-4833 ...... 305-246-5827 Maine Potato Board ...... 26 ...... 21 ...... 207-769-5061...... 207-764-4148

C&D Enterprizes ...... 94...... 53 ...... 760-772-0535 ...... 760-772-9011 Mann Packing Company, Inc...... 9...... 2 ...... 800-884-6266 ...... 831-422-5171

Capital City Fruit Co., Inc...... 22 ...... 14 ...... 515-981-5111 ...... 515-981-4564 J. Marchini & Son / LeGrand...... 62...... 43 ...... 559-665-9710...... 559-665-9714

CF Fresh ...... 24...... 68 ...... 360-855-3192 ...... 360-855-2430 Mayrsohn International Trading Co., Inc. ....101...... 46 ...... 305-470-1444...... 305-470-1440

Chilean Avocado Importers Association...... 29 ...... 19 ...... 202-626-0560 Melissa’s/World Variety Produce, Inc...... 63...... 47 ...... 800-468-7111...... 323-588-7841

Christopher Ranch ...... 60...... 76...... 408-847-1100...... 408-847-0581 MIXTEC Group...... 34 ...... 31 ...... 626-440-7077...... 626-440-1557

Concord Foods ...... 28...... 58 ...... 508-580-1700 ...... 508-584-9425 Mor USA ...... 26...... 49 ...... 914-347-1611 ...... 914-347-1605

Connecticut Currant LLC ...... 66 ...... 71 ...... 860-889-3766 ...... 860-887-3087 Mor USA ...... 84...... 40 ...... 914-347-1611 ...... 914-347-1605

The Cranberry Network LLC ...... 57...... 6...... 715-422-0410...... 715-422-0406 New Limeco LLC ...... 101...... 80 ...... 305-258-1611 ...... 386-776-2662

Crowley Maritime Corp...... 41...... 64 ...... 800-CROWLEY New York Apple Association, Inc...... 79...... 9...... 585-924-2171...... 585-924-1629

Curry & Company ...... 33 ...... 16 ...... 800-929-1073 ...... 503-393-6085 Niagara Fresh Fruit Co...... 83...... 27...... 716-778-7631...... 716-778-8768

D’Arrigo Bros. Co. of New York ...... 77...... 8 ...... 800-223-8080...... 718-960-0544 Nickey Gregory Company, LLC...... 73...... 60 ...... 404-366-7410 ...... 404-363-1169

Deardorff Family Farms...... 63...... 79 ...... 805-200-5216...... 805-483-1286 Northern Plains Potato Growers Assn...... 56...... 26 ...... 218-773-3633...... 218-773-6227

Del Monte Fresh Produce ...... 116...... 55 ...... 800-950-3683 ...... 305-520-8495 OsoSweet Onion Co...... 37...... 73 ...... 304-545-6470 ...... 304-342-5022

Direct Source Marketing...... 35...... 32...... 914-241-4434 ...... 914-241-4435 Pennsylvania Apple Marketing Program ...... 53...... 54...... 717-783-5418...... 717-783-4262

Dole Fresh Fruit Company ...... 2...... 3 ...... 818-879-6600...... 818-879-6628 Peri & Sons Farms ...... 34 ...... 11 ...... 775-463-4444 ...... 775-463-4028

dProduce Man Software...... 26 ...... 10 ...... 888-PRODMAN...... 650-712-9973 Peruvian Asparagus Importers Association 105...... 74 ...... 610-284-0326

Duda Family Farms ...... 95...... 70...... 561-804-1477...... 561-753-6660 Produce for Better Health Foundation...... 39...... 5 ...... 302-235-2329 ...... 302-235-5555

Earthbound Farm ...... 62...... 59 ...... 888-624-1004...... 831-623-7886 Produce Marketing Association ...... 68...... 75 ...... 302-738-7100...... 302-731-2409

East Coast Brokers & Packers, Inc...... 115...... 56 ...... 800-557-7751 ...... 863-869-9850 SAGARPA - Embassy of Mexico...... 46-47...... 36 ...... 202-728-1727...... 202-728-1728

Edinburg Citrus Association ...... 92...... 24 ...... 956-383-6619 ...... 956-383-2435 Sunlight Intl. Sales/Jakov P Dulcich & Sons...... 25...... 57 ...... 661-792-6360...... 661-792-6529 Eli & Ali, LLC ...... 82...... 67 ...... 866-354-2547 ...... 718-389-1514 Sweet Onion Trading Company ...... 36 ...... 12 ...... 800-699-3727...... 321-674-2003 Fresh Produce Association of The Americas...... 48...... 69 ...... 520-287-2707 ...... 520-287-2948 Thermal Technologies, Incorporated ...... 99...... 63...... 808-4-MRPEEL ...... 803-691-8010

Freska Produce International, LLC ...... 84...... 78 ...... 805-650-1040 ...... 805-650-3550 A.J. Trucco, Inc...... 27 ...... 51 ...... 718-893-3060 ...... 718-617-9884

General Produce, Inc...... 71 ...... 61 ...... 800-782-5833 ...... 404-361-1841 United Fresh Produce Association ...... 96...... 29 ...... 202-303-3400 ...... 202-303-3433

Global Organic Specialty Source, Inc...... 63...... 42...... 877-952-1198 ...... 941-358-6551 United Fresh Produce Association ...... 74...... 30 ...... 202-303-3400 ...... 202-303-3433

Great Lakes International Trading, Inc...... 22...... 82 ...... 231-947-2141...... 231-947-0628 Valley Fig Growers...... 107...... 62 ...... 925-463-7565 ...... 925-463-7456

Greenhouse Produce Company, LLC...... 82...... 38 ...... 888-492-1492...... 772-492-1592 Village Farms ...... 54...... 45 ...... 877-777-7718...... 610-429-6222

Hunts Point Terminal Co-Op Assn...... 19...... 39 ...... 718-542-2944 ...... 718-542-2971 Wada Farms Potatoes Inc...... 34 ...... 81 ...... 888-BUY-WADA...... 208-785-0415

Idaho Potato Commission ...... 90...... 22 ...... 208-334-2350 ...... 208-334-2274 Washington Fruit & Produce ...... 59...... 66 ...... 509-452-8529...... 509-457-6177

NOVEMBER 2010 • PRODUCE BUSINESS 113 BLAST FROM THE PAST NOGALES,1986

Kelley Larey George Wise Butch Denniston Alberto Maldonado

Mr. & Mrs. George Uribe Ana Alicia and Hector Jaime Mr. & Mrs. Jerry Grossman Fernando Espinosa

In 1986, the West Mexico Vegetable Distributors Association tered around the dance floor served as chairs. (WMVDA) celebrated its annual convention in Nogales, AZ, with a The WMVDA was renamed in 1993 to the Fresh Produce Asso- party held in the warehouse of Thomas Produce Sales. According to ciation of the Americas (FPAA), and it continues the tradition of Chuck Thomas, president/secretary/treasurer of the same company gathering each year — with its 42nd Annual Produce Convention currently based in Rio Rico, AZ, the main event was a western- and Invitational Golf Tournament held this year in November at the themed hoedown. Guests dressed as cowpokes and hay bales scat- Tubac Resort, in Tubac, AZ.

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

114 PRODUCE BUSINESS • NOVEMBER 2010 Reader Service # 56 Reader Service # 55