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Varietal Update November 17, 2016 FRESH NEWSLETTER FOR A NEW SEASON We are pleased to introduce an updated grower newsletter format that continues to provide seasonal varietal information, report on Sunkist sales and marketing activities while also highlighting consumer and industry trends that inform our sales and marketing strategies. Our staff will continue to share important regulatory information with growers separately from the newsletter to ensure timely news is communicated with the necessary urgency. Additionally, we encourage grower members to leverage the industry resources noted at the end of this newsletter for regular updates on important industry issues. As always, your feedback is important to us. Please e-mail questions, comments and suggestions about the newsletter to [email protected]. VARIETAL UPDATE ORANGES The Valencia orange crop has finished as the Navel orange season ramps up. The Navel crop is starting off with very good flavor and internal color. Focus is currently on sizes 88 and smaller as we wait for the season to progress with better overall color and more sizing options. Organic Navel oranges have also started shipping, with good availability and slightly larger sizing than the conventional crop; organic navels are currently at an 88/72/113 peak. The first packs of Cara Cara Navel oranges are expected the week of November 21/28, with initial sizing projected to be 88/72/113/56. Blood oranges are expected to start shipping the week of December 5. LEMONS Demand for lemons continues to grow, with bookings ahead of the past two years. Shipments are currently from districts 1 (D1), 2 (D2) and 3 (D3). The D3 harvest is underway with 47% of the crop in-house. The D1 harvest has started with 6% of the crop in-house. The new D2 program is just starting with light harvest volume. Specialty lemon supplies available include domestic Meyer, Organic, Seedless and Zebra® (pink variegated) 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. Sunkist® Persian and Key limes are also available to load in McAllen, TX. MANDARINS & TANGERINES Satsuma mandarins are almost finished. Sales were strong throughout the season. Color and flavor have been exceptional on this early mandarin. Sunkist Smiles® mandarins are in production, with supplies increasing as the season progresses. Size structure will start out peaking 32/36/28 followed by 24 for the next couple weeks. The Fairchild tangerine season has begun! Size structure will peak heavy LGE/MED followed by JMB. Fruit has great color, flavor and juice content and is easy to peel. GRAPEFRUIT Grapefruit from our Texas and Florida programs, which supplement our California program to offer customers year-round availability, is now shipping. PUMMELOS The pummelo season is running at a good pace with strong movement. Good supplies are available with all shippers packing. Early pack outs are peaking midrange in the sizes of 12s and 14s, mostly Sunkist grade. SALES & MARKETING UPDATE COSTCO OPENS NEW STORE IN HANFORD, CA WITH SUNKIST MANDARINS Hanford residents are ecstatic about the new Costco store that opened October 27, with lines of consumers waiting for the greatly anticipated store opening. Consumers shopping the new store were able to stock up on Sunkist mandarins, prominently displayed in the retailer’s produce department. Sunkist navels and Texas grapefruit were also featured at the opening. Sunkist Director of North American Sales Lance McMillan, pictured left, celebrated the opening with our Costco buyers. SUNKIST CELEBRATES NEW CITRUS SEASON AT 2016 PMA FRESH SUMMIT CONVENTION + EXPO With consumers focused on fresh, bold flavors, demand for citrus continues to grow. According to IRI Worldwide Data, citrus category growth out-performed fruit and produce category growth in both volume and dollar sales over the past year, so the opportunity was ripe for Sunkist to preview this year’s Sunkist citrus crop at the 2016 PMA Fresh Summit Convention + Expo. Sunkist along with over a thousand vendors, exhibits at the annual PMA Fresh Summit, which is one of the largest fresh produce trade shows in the world. The event is well attended by nearly 20,000 from over 60 countries and provides Sunkist with the opportunity to meet with many key citrus buyers and customers from all over the world as well as showcase new packaging, display merchandising units, recipe sampling and the full line of fresh citrus varieties and Trademark Licensing products. “PMA marks the beginning of a new citrus season, so this is a great time for us to connect with our customers and discuss opportunities to capitalize on demand,” says Joan Wickham, Director of Communications for Sunkist Growers. “We are excited to kick off the season and showcase trends and marketing initiatives.” Sunkist Navel orange season begins in mid-October. Navel oranges, refreshingly sweet and juicy, are the most popular and widely known citrus fruit in the world. Seedless and easy to peel, Navel oranges make for a tasty and nutritious snack, while also serving as a wonderful ingredient for fresh, seasonal recipes. Additionally, Sunkist Satsuma mandarins were showcased at Sunkist’s booth. These easy-peel mandarins are sweet, seedless and bursting with flavor, making them a consumer favorite. They are also packed full of Vitamin C— with just one Satsuma mandarin providing you with a full day's supply! Thought to be a cross between a regular lemon and a mandarin, Meyer lemons were also showcased. Sweeter and less acidic than conventional lemons with a refreshing herbal scent, Meyer lemons are perfect for cooking, baking, and beverages. Sunkist offers quality, fresh lemons year-round as well as a portfolio of specialty lemons with seasonal availability including Seedless and Zebra® brand (pink variegated) to meet growing demand for this versatile household staple. As consumer demand for organic citrus continues to increase, Sunkist growers are increasing production of organic citrus varieties. The cooperative currently offers a broad portfolio of organics including Navel, Cara Cara Navel and Valencia oranges, mandarins, Minneola tangelos, grapefruit, lemons and limes. “Consumers are looking for seasonal items in the produce department,” said Sunkist Director of Retail Marketing, Julie DeWolf. “Retailers can generate excitement around citrus season by leveraging point of sale materials such as posters and secondary display units, coupled with sampling, to educate consumers about seasonality, nutrition information and flavor profiles of seasonal varieties.” For retailers looking to capitalize on seasonal citrus varieties, Sunkist will preview specialties that come into season during the winter months including Cara Cara Navel oranges, blood oranges and Minneola tangelos – unique specialty items that respond favorably to promotion. Showcasing how delicious and versatile Sunkist citrus is as an ingredient, Sunkist sampled citrus recipes courtesy of Chef Jill Davie, including an Orange Chorizo-Spiced Burger Bowl and a Lemon-Coconut Soup with Butternut Squash, Tomatoes and Basil Shrimp. Additionally, refreshing beverages were served courtesy of Chef Kathy Casey including a Sparkling Lemon Lavender drink in the morning and a California Mai Tai, made with freshly squeezed oranges, lemons and limes, in the afternoon, pictured left. FOOD BLOG PROMOTES SUNKIST NAVEL ORANGES Sunkist partnered with food influencer Sally’s Baking Addiction this year to feature citrus recipe ideas and tips throughout the season. Sally’s latest citrus concoction, Dark Chocolate Slice & Bake Cookies, features juice and zest from Sunkist Navel oranges. She writes, “See that gorgeous orange zest in the cookie? I love it. So much flavor. This is a recipe I’m making in partnership with Sunkist and their juicy, refreshing navel oranges shine in these slice ‘n’ bake cookies. What better to pair with orange than dark chocolate? Truly an underrated flavor combination, chocolate and orange is not only spot-on delicious– the pair’s kinda perfect for Halloween, no?” The recipe post was also shared on her social channels: Facebook, Twitter, Instagram and Pinterest. Sally’s Baking Addiction covers cooking and baking, offering recipes and ideas for meals and desserts. Sally is also an author of two books – Sally’s Baking Addiction and Sally’s Candy Addiction. All her recipes are classic and approachable, inspired by her favorite seasonal flavors and recipes passed down in her family. Her blog also includes informational posts about different baking techniques and how to use proper ingredients to achieve the best results. The blog has 255,805 unique monthly visitors. FAREWAY FEATURES SUNKIST ORANGES IN RETAILER’S CONSUMER MAGAZINE The November-December issue of Fareway’s seasonal magazine, Balance, promotes the start of Sunkist orange season in a branded 2- page spread. The feature includes educational information about Navel, Cara Cara Navel and Blood oranges as well as Sunkist’s Cranberry, Orange, Walnut & Goat Cheese Dip recipe. The spread also highlights Sunkist’s Family Stories program, highlighting Sunkist grower Gary Laux, pictured right. CONSUMER NEWS & TREND UPDATE In this new 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 Convenience stores have been offering a more sophisticated and diverse selection of food for some time, posing a competitive threat to quick-service restaurants. New data reveals that this threat continues to grow, as convenience stores are seeing increased traffic from consumer groups. For example, both Gen Z and millennials have increased visits to convenience stores in the last five years. Millennials are now the heaviest users of convenience stores, accounting for 32 percent of visits in the year. According to a new study, American children's high salt intake puts them at risk for heart disease later in life and nearly 90 percent of U.S.
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