January 27, 2017

VARIETAL UPDATE

ORANGES Recent storms have posed some disruption to supply, but shippers have done a fantastic job of harvesting between storms to minimize the impact of weather.

Navels are at peak season flavor and color, with excellent quality. Organic Navels are also shipping with good sizing, an 88/72/56 peak.

Cara Cara Navel oranges are also available with sizes currently peaking at 88/72/113/56. Strong demand for 72s and larger are leaving room for promotional opportunities on 88/113 Sunkist grade fruit. Choice grade availability is also providing opportunities for promotion. Organic Cara Caras are available in limited supply.

Blood oranges are now in full production with a beautiful internal blush. A good range of sizing is available, peaking at 113/88/138. Organic blood oranges are available in small volumes.

LEMONS demand continues strong, with continued strong numbers against previous years. Sunkist is currently shipping from all districts. Due to the recent weather, we expect demand to exceed supply on small size lemons.

Specialty lemons are also increasing in demand, experiencing significant growth in the past 5 years of Organics, Seedless, Meyers and Zebra® (pink variegated) lemons. All are available now, with sporadic supplies of Zebra lemons.

LIMES Sunkist is shipping limes along with our lemons in Ventura County, CA and Lancaster County, PA. In addition, we are delivering full trucks to customers directly from Mexico and Sunkist Persian and Key limes are also available to load in McAllen, TX.

MANDARINS & Sunkist Smiles® Mandarin supplies have been tight with the recent rain activity. Size peaking at 24/21/28 followed by 32. Fruit has full color and is eating fantastic. Organic Mandarins are being harvested but supplies have also been tight due to the weather. Size structure is running smaller this season, peaking on a 40/44-36 split.

TANGELOS Desert Minneola are wrapping up and Northern Minneolas have started with sizes peaking on 100/125/150-80 split. Color is very good and this fruit is eating great with an optimum sugar to acid ratio. Organic Minneolas are also available, with Southern wrapping up and Northern starting with peak sizes of 100/80/125 Sunkist grade.

GRAPEFRUIT Texas is packing with very good volumes of 40s and smaller. Florida Grapefruit is at peak demand, with limited supplies available as the harvest comes to a close at the end of February.

PUMMELOS Pummelo supplies have been limited due to the weather, but demand has been strong ahead of the Lunar New Year.

SPECIAL BULLETINS

SUNKIST GROWERS PLANNING VISIT TO AUSTRALIA Sunkist is offering an opportunity to visit the Mildura production region in Australia to tour and visit with key Australian Citrus growers. Among those we are planning to visit are Greg and Susan Chislett, the founders of the Chislett and M7 Navel , as well as two to three working citrus groves, Mildura Fruit Company, Seven Fields Citrus, Auscitrus (the Australian Citrus Industry Budwood & Seed Scheme) and the Dareton Research Station.

Tentative schedule would call to depart LAX Friday April 21, 2017 to arrive in Mildura on Sunday, April 23rd. The group would tour Monday the 24th, Tuesday, the 25th, and Wednesday the 26th. Depart for home or your next destination on Thursday the 27th. Timing of the trip coincides with the start of the Australian Navel season.

Transportation and overnight accommodations are your responsibility, but Sunkist will help coordinate airline, hotel arrangements and ground transportation. Capacity is limited, therefore, if you are interested in exploring this unique opportunity, please contact Jim Sebesta at 559 562-8401 or via email at [email protected].

KOREA AND CHINA EXPORT MARKETS – REQUIRED TREATMENTS FROM CCQC Significant rainfall in most growing regions has made it difficult for growers to make copper applications in compliance with the Korea and China protocols. We are sending updated information on required treatments that will maintain compliance with the Korea and China protocols.

Korea (Septoria Spot) The second copper application for control of Septoria Spot is due by Feb. 4. Since rainfall has made it difficult for growers to make airblast applications of copper for Septoria Spot control, growers can still make the Feb. 4 deadline if growers make an aerial application of Quadris Top® (azoxystrobin/difenoconazole). UC Riverside’s Jim Adaskaveg suggests the application be made by helicopter and that the pilots make the application at the slowest possible speed with the greatest amount of water possible. These factors will improve efficacy. There are MRLs for Quadris Top® in most major export markets.

Additionally, CCQC recommends that packinghouses and growers monitor groves for ice marks and submit samples to the NAVEK lab to screen for Septoria Spot infections.

China (Phytophthora) Given the climatic conditions this season, the deadline for the second copper application for Navel and Valencia oranges in the San Joaquin Valley and southern California will be on Feb. 4. The deadline for the first application of copper for early-season Valencia oranges grown in the desert region (Imperial County and Eastern Riverside and San Bernardino Counties) is Feb. 21.

Due to the frequency and volume of rainfall in the San Joaquin Valley and Southern California many growers have not been able get equipment into groves to make copper applications, so a significant amount of navel and acreage may not meet the China protocol deadlines.

APHIS has agreed to provide packers and growers additional options to comply with the protocol and still qualify shipments for export to China if certain additional conditions are met.

Valencia Oranges Imperial County and Eastern Riverside and San Bernardino Counties (Expected harvest dates – Feb through April)  Copper applications must be made by Feb. 21. There is likely to be sufficient time to make applications in this region, so no additional options are required at this time.

San Joaquin Valley and Southern California (Expected harvest dates – May through September)  Packers should evaluate groves to determine when they are likely to be harvested.  Growers would need to make a second copper application only if rain is expected within 2 months of the expected harvest date.  This approach can be justified, because brown rot infections, including latent infections, would be realized within two months of the last rainfall, so all infected fruit would have fallen from the tree before harvest.  Other measures in the China protocol must still be followed, such as skirt pruning, harvesting fruit above 20 inches and monitoring groves for disease one week prior to harvest at recommended threshold values for Tulare (0 diseased fruit/A) and other citrus-producing counties (<5 diseased fruit/A).

Navel Oranges San Joaquin Valley and Southern California  Growers that are unable to make applications by the Feb. 4 deadline have the option to delay copper applications until Feb. 18. However, if the copper application is delayed, exporting fruit to China from that grove must be delayed for 30 days from the date of the copper application.  Growers and packers that choose this option should monitor groves prior to harvest to assess the efficacy of the copper treatment and to avoid export of fruit from groves that exceed the Phytophthora threshold of Tulare (0 diseased fruit/A) and other citrus-producing counties (<5 diseased fruit/A).  A 30-day delay in harvesting would allow infections to develop and fall from the tree prior to harvest.  All other measures in the China protocol must be followed.

SALES & MARKETING UPDATE

HONG KONG SUPERMARKET CHAIN PROMOTES SUNKIST CITRUS WITH BRANDED MERCHANDISING Sunkist branded “shelf talkers” will be posted at retail point-of-purchase displays in 323 Wellcome stores in Hong Kong this season to provide shoppers with information about seasonal citrus varieties.

The bilingual text promotes the nutritional information of Pummelo in English and Chinese. The shelf talker is one in a series of 10 different varieties featured including: pummelos, Sunkist Smiles® mandarins, Seedless, Zebra® and Meyer lemons. Minneola tangelos, Gold Nugget variety mandarins, Ojai Pixie tangerines, blood oranges and Cara Cara Navel oranges.

CONSUMER NUTRITION SITE PROMOTES CITRUS AND SKIN HEALTH Bonnie Taub-Dix, one of Sunkist’s registered dietician contacts, recently published an article on “Eat This, Not That” about foods that can help keep your skin healthy during the winter and included citrus research that Sunkist shared with her.

Taub-Dix is quoted in the piece saying, “Citrus fruits help provide Vitamin C, which promotes collagen formation and slows the effects of free radicals, helping to maintain firm and youthful skin,” says Taub-Dix. “Pink also provide lycopene, an antioxidant that helps skin stay resilient and smooth.”

Read the piece online here. “Eat This, Not That” has over 327 thousand unique visitors per month.

COSTCO MAGAZINE FEATURES SUNKIST® LEMONS The January issue of Costco’s consumer magazine, Costco Connection, included a feature on the versatility of Sunkist lemons. The piece emphasized the nutritional benefits of lemons along with a variety of culinary and household uses.

“When life gives you lemons, sure you can make but there is so much more you can do with this zesty fruit. From dressings to desserts to pastries and potions, you’ll want to have this fruit on hand year-round,” writer Laura Bode states.

Sunkist branding was included in the piece, along with our recipe for Classic Lemon Bars with a Poppy Seed Crust.

Read the piece online here. Costco Connection is distributed to 26.9 million Costco members.

MINNEOLA TANGELOS HIGHLIGHTED IN TORONTO NEWSPAPER The Toronto Star recently included an educational column about Minneola tangelos in their food section. The piece emphasizes the nutrition benefits of the variety and also delves into culinary uses, including a Sunkist recipe for Chicken with Minneola Salsa.

Reporter Cynthia David writes, “with its bold tart- sweet flavour and loads of juice, the Minneola is fantastic for juicing and cocktails. Its easy-peel rind and lack of seeds also make it a healthy, convenient snack for anytime between now and April.”

Read the piece online here. The Toronto Star has a print circulation of 1,399,000 and 1,292,000 online unique monthly visitors.

SUNKIST CITRUS PLAYS LEAD ROLE IN ROUSES CITRUS EXTRAVAGANZA With the large array of citrus varieties available this time of year, Rouses is a huge supporter of Sunkist through their Citrus Extravaganza event at all 48 store locations in Louisiana, Alabama and Mississippi.

Our new Flavor Perfected by Nature campaign gives consumers a “flavor map” of the different citrus varieties available, guiding them from the bold, tangy flavor of the Minneola to the extremely sweet Cara Cara navel orange, and many varieties in between. This flavor map is currently on display in a 22x28 poster in the middle of the citrus section of each store (see photo left) The in-store events include Minneola, Mandarin, Cara Cara and Grapefruit tasting demos, quarter bin displays on several varieties, a $1 instant redeemable on-pack coupon for Cara Caras and an ad in Rouses Everyday Magazine, (see photo above) along with several flyer/digital ads over the course of the month. Helping consumers understand the flavor profiles of each citrus variety, and urging them to find new favorites, will encourage impulse purchase and drive the category.

SIGN UP FOR SUNKIST CONSUMER E-NEWSLETTER Want to hear more from Sunkist? Check out our email newsletter that shares seasonal varietal information, usage tips and recipe ideas with consumers.

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CONSUMER NEWS & TREND UPDATE In this section of the grower newsletter, Sunkist summarizes consumer and industry new stories that the sales and marketing teams are following to inform the positioning of our brand and citrus portfolio.

RECENT NEWS IN SUMMARY To further combat the nation’s food waste issue, Hy-Vee Inc. recently began offering so-called “ugly” produce in nearly all of its 242 grocery stores. The retailer has partnered with Robinson Fresh, one of the larger produce companies in the world, to offer its unique line of Misfits produce. Launching the Misfits program is another way Hy-Vee is trying to reduce food waste at all levels — from the supply chain to distribution and disposal.

A new report by industry giant Unilever shows that consumers' belief in the social or environmental welfare of brands hugely affects their purchasing decisions. In a study of 20,000 adults across five countries—US, UK, Brazil, India and Turkey—a strong correlation was found between respondent’s reported opinions on sustainability and their actual buying habits, with one in three consumers choosing brands based on sustainability.

Panera Bread recently announced that it had removed all food additives from its U.S. menu as part of an ongoing initiative to eliminate all artificial flavors, colors, sweeteners, and preservatives from its food products. Furthermore, General Mills recently patented a process to create a range of dairy alternatives and are experimenting with legumes such as chickpeas, adzuki beans, fava beans and lentils to create non-dairy ‘milks;' eggless mayonnaise and dips; and cultured legume based products such as cheeses, yogurts, kefir and ice cream.

FOOD INDUSTRY NEWS AND TRENDS A Chipotle-style pizza chain wants to take over the world — and it's a huge threat Domino's and Pizza Hut [Kate Taylor, Business Insider] Business Insider reports that Blaze Pizza is already the fastest-growing restaurant chain in America. And now, it's setting its sights on the rest of the world. Blaze Pizza opened 68 new restaurants in the last year, reaching 173 locations across the US.

One in three consumers choose brands based on sustainability: Unilever study [Louis Gore-Langton, Food Navigator] Food Navigator reports that a new report by industry giant Unilever shows that consumers' belief in the social or environmental welfare of brands hugely affects their purchasing decisions.

Panera Bread removes artificial ingredients from U.S. menu [Aravind K in Bengaluru, Reuters] Reuters reports that bakery cafe operator, Panera Bread Co recently announced that it had removed artificial ingredients from its food menu and Panera at Home products in the United States.

Fava bean yogurt? General Mills patents process to create range of dairy-alternatives from legumes [Elaine Watson, Food Navigator] Food Navigator reports that a patent application from General Mills shows it is experimenting with legumes such as chickpeas, adzuki beans, fava beans and lentils to create non-dairy ‘milks;' eggless mayonnaise and dips; and cultured legume based products such as cheeses, yogurts, kefir and ice cream.

FOODSERVICE NEWS 5 Ways To Take Favorite Fruits To The Next Level [Restaurant Business] Restaurant Business reports that apples and bananas are commonplace fruit flavors on menus, yet operators still have room to explore applications that go beyond standard juice, smoothie, fruit plate or dessert presentations. As appeal of fruit flavors continues to grow—jumping from 40% in 2013 to 46% today, according to Technomic’s Flavor Consumer Trend Report—less familiar, if not entirely foreign, fruit preparations are appearing on menus. Some of these techniques are intended to make common fruits more kid-friendly (like fruity ketchup or fruit gummies in dessert), while others present a new dimension to a simplistic flavor (such as grilled apples or pickled blueberries) using equipment in-house.

Research: Less than Half of Americans Think They Eat Right [QSR Magazine] QSR Magazine reports that with every New Year comes new resolutions. For many Americans that means working out more, de-stressing or eating better and, according to new research from Mintel, it couldn’t come at a better time, as less than half (42 percent) of Americans consider their diet to be healthy. Indeed, less than two in five (38 percent) consumers agree that healthy foods are worth the added expense and just 44 percent pay attention to serving sizes. Americans also generally appear to be largely distrusting of food brands as only 14 percent believe regulatory approval indicates a food is healthy and just 16 percent trust the health claims on food and beverage packages. What’s more, a mere one quarter (23 percent) of consumers agree that the US Dietary Guidelines are good for them.

WELLNESS NEWS Incentives may spur poor families to buy more fruits, veggies [Robert Preidt, HealthDay News] HealthDay News reports that a quick chat with low-income families about financial incentives to eat more fruits and vegetables increased consumption of these items, according to new research.

A diet rich in fruits and vegetables outweighs the risks of pesticides [Cara Rosenbloom, The Washington Post] The Washington Post reports that research shows that the list of the 12 vegetables and fruits with the most pesticides– which are being questioned for their scientific validity – may be doing more harm than good.

CITRUS AND INDUSTRY NEWS Fruit and Veggie Snacks Pave Way to Healthier America [Progressive Grocer] Progressive Grocer reports that as consumers increasingly turn to fruit and vegetable snacking as part of a healthy lifestyle, grocers have an opportunity to boost sales with a variety of convenient products like sliced apples, easy-peel citrus, and mini tomatoes and peppers. The article includes mention of Sunkist Growers and quotes Joan Wickham, who comments on how Sunkist is working to educate consumers about citrus snacking.

Organic Citrus Sales On The Rise, Sunkist Ready To Meet Growing Demand [Perishable News] Perishable News reports that as the organic category continues to grow, so does demand for organic citrus – including seasonal easy-peel varieties. The article adds that according to IRI Worldwide Data, sales of organic easy-peel citrus varieties last year were up over 70 percent in dollars and 60 percent in volume and includes mention of Sunkist’s broad portfolio of organic citrus varieties.

Hy-Vee partners with Robinson Fresh to sell its Misfits ugly produce [The Produce News] The Produce News reports that Hy-Vee Inc. recently began offering so-called “ugly” produce in nearly all of its 242 grocery stores. The retailer has partnered with Robinson Fresh, one of the larger produce companies in the world, to offer its unique line of Misfits produce. The article adds that Misfits provides customers more fruit and vegetable variety at a lower cost while also helping to reduce produce waste. Through the program, four to six Misfit items are delivered weekly, based on what is seasonally available, and are sold on average at a 30 percent discount.

Argentine Lemons May Bring Disease [Jessica Theisman, California Ag Today] California Ag Today reports that California lemon growers are feeling the squeeze due to the startling news of the USDA’s ruling to allow Argentine lemon imports into the U.S. Those lemons from Argentina could be carrying an invasive insect, along with a disease not found in California.

Anti-bacterials reducing impact of citrus greening [Fresh Plaza] Fresh Plaza reports that in the search for a tool to combat citrus greening, which has run rampant, devastating in Florida, growers may have finally found an answer. The article adds that in March, Florida Agriculture Commissioner Adam Putnam approved an emergency order allowing Florida growers to spray three anti-bacterial chemicals on their trees pending U.S. Environmental Protection Agency approval.

10 ways to make the most of citrus season [MSN] MSN reports on tips on how to make the most of citrus season. The article notes that January is the best month to find in-season fruit and includes listicle style tips on buying, storing, juicing, cooking and washing citrus.

INDUSTRY NEWS RESOURCES Stay connected to the industry by connecting with these groups, who regularly issue important updates about industry meetings, regulatory matters and more. California Citrus Mutual California Citrus Quality Council Citrus Pest & Disease Prevention Program’s Citrus Insider

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This publication is prepared for Sunkist growers. Sunkist, Sunkist Smiles and Zebra are registered trademarks of Sunkist Growers, Inc. ©2017