inside... PUNDIT LOOKS AT WHOLE FOODS •Q&AWITH KEN SCHMIDT •CAUSE •CHINESE NEW YEAR • PMA IMPACT AWARDS SUPER BOWL MARKETIING •MEXICAN PRODUCE •SOUTH AMERICAN IMPORTS •CHILEAN EXPORTERS • PRODUCE •FLORIDA STRAWBERRIES REGIONAL PROFILE:BOSTON •FLORIDA CITRUS •ALMOND •DRIED FRUITS AND NUTS •PROTECTING FLORAL

DEC. 2008 • VOL. 24 • NO. 12 • $9.90

MARKETING • MERCHANDISING • • PROCUREMENT

HEALTH INITIATIVES Starts on page 67 Reader # 53 DEC. 2008 • VOL. 24 • NO. 12

HEALTH INITIATIVES Starts on page 67

FEATURES

MARKETING FOR A GOOD CAUSE (EVEN IN BAD TIMES) PART 1...... 23 As Cause Marketing becomes increasingly popular, suppliers and retailers can use COVER STORY it as an additional marketing tool as well as an opportunity to do something good. RING IN SALES DURING CHINESE NEW YEAR ...... 30 TOP 10 TRENDS This annual celebration offers retailers the opportunity & ISSUES FOR 2009 ...... 16 to market and sell produce popular in Asian cuisines. In a turbulent economic climate, it’s back to basics. PUMP UP YOUR SUPER BOWL PROMOTIONS ...... 32 Score a sales touchdown with winning marketing and merchandising tactics.

MEXICAN PRODUCE INDUSTRY REMAINS OPTIMISTIC ...... 40 The Mexican industry continues to press forward and COMMENTARY toward future despite its many challenges.

THE FRUITS OF THOUGHT SOUTH AMERICAN IMPORTS ...... 50 Counting Our Blessings ...... 8 Freight costs and fluctuating dollar valuations make shipping product from the exporting countries into the a major challenge. PERSPECTIVE Cash And Leverage...... 105 WIN BIG WITH TEXAS PRODUCE ...... 60 Although production is down slightly, the Lone Star State VOICE OF THE INDUSTRY continues to create marketing programs and expand importing efforts. Courting Consumer-Affairs Advisors .....106 FLORIDA STRAWBERRIES MAKE RETAIL SPLASH ...... 63 EUROPEAN MARKET Bountiful strawberries take center stage in the produce department Q&AWith Philippe Binard ...... 108 thanks to consumer , promotional efforts and great-tasting fruit. DEPARTMENTS IN EVERY ISSUE MERCHANDISING REVIEWS: How To Merchandise Florida Citrus With Ease ...... 95 THE QUIZ ...... 4 Layer on profits by stocking long-time favorites and new varieties from the Sunshine State.

WASHINGTON GRAPEVINE ...... 6 DRIED FRUIT AND NUTS: Health-Conscious Consumers Driving Almond Sales ...... 99 RESEARCH PERSPECTIVES ...... 10 Give this nutritious a boost by highlighting health attributes and usage ideas.

COMMENTS AND ANALYSIS ...... 11 FLORAL & FOLIAGE MARKETING: Reduce Shrink By Preventing Botrytis ...... 103 PRODUCE WATCH ...... 12 Protect floral crops against grey mold by taking proper steps to identify and control it.

FLORAL WATCH ...... 101

BLAST FROM THE PAST ...... 110 SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE PUNDIT INFORMATION SHOWCASE .....110 Whole Foods Exercises Pundit ‘Option Two’...... 14

Q & A WITH KEN SCHMIDT...... 15

PACKAGING WITH IMPACT ...... 36 Six companies claim PMA’s prized Impact Awards for Packaging.

DEALING WITH CHILEAN EXPORT TRANSFORMATIONS ...... 58 Chilean exporters of winter fruit present their vision for the United States.

REGIONAL PROFILE: BOSTON Boston Carries On ...... 79 Despite a slow economy, business is bustling at Boston’s produce market.

Atlantic Food Mart ...... 92 32 Neighborhood offers quality and service from employees who care. Summer Winter ...... 94 Fresh, regional fare is the key — no matter what the time of year.

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.

DECEMBER 2008 • PRODUCE BUSINESS 3 PRODUCE QUIZ

D E C . 20 0 8 • VO L . 24 • NO . 1 2 THIS MONTH’S WINNER: Brian Wright Being successful in the produce industry, President & Editor-in-Chief • JAMES E. PREVOR Sales and Packing Manager says Brian Wright, sales and packing manag- [email protected] Del Mar Farms er, Del Mar Farms, Westley, CA, entails Director • KENNETH L. WHITACRE Westley, CA knowing how to “roll with the punches. [email protected] Every day is different,” he explains. “It’s a Managing Editor • JAN FIALKOW very fast-paced industry.” [email protected] Wright has worked for the grower/ship- 1 Special Projects Editor • MIRA SLOTT SPONSORED BY per/packer for 2 ⁄2 years and deals mostly [email protected] with apricots, honeydew, Roma tomatoes Assistant Editor • AMY SHANNON and almonds. “Dealing with variability is [email protected] How To Win probably one of the biggest challenges in Circulation Manager • KELLY ROSKIN To win the PRODUCE BUSINESS Quiz, the first the produce business.” [email protected] thing you have to do is enter. The rules are Brian’s responsibilities include watching simple: Read through the articles and packing costs and dealing with food-safety Executive Assistant • FRAN GRUSKIN advertisements in this issue to find the and quality-assurance issues. “Food safety [email protected] answers. Fill in the blanks corresponding has become a true necessity these days and European Bureau Chief • ROBERT ZWARTKRUIS to the questions below, and either cut along we’ve always strived to make quality our No. [email protected] the dotted line or photocopy the page, and send your answers along with a business 1 priority,” he adds. Production Director • DIANA LEVINE [email protected] card or company letterhead to the address A PRODUCE BUSINESS reader since he joined listed on the coupon. The winner will be Del Mar, Brian enjoys the history of the Production Leader • JACKIE TUCKER chosen by from the responses many produce businesses, particularly those Production Department received before the publication of our that are family-owned and passed down FREDDY PULIDO February issue of PRODUCE BUSINESS. The from generation to generation. JOANNA ARMSTRONG winner must agree to submit a color photo As the winner of the PRODUCE BUSINESS Show Coordinator • JACKIE LOMONTE to be published in that issue. Quiz, Brian wins a 12-piece golf set. [email protected] WIN AN IPOD/IPHONE DUAL ALARM CLOCK RADIO Contributing Editors CAROL BAREUTHER, DUANE CRAIG, PETER LAVERY, Start or end your day with your favorite music or podcasts — direct from your iPod or JACQUELINE ROSS LIEBERMAN, COLLEEN MCGINN, iPhone. Charges each unit while docked. Alarm can be set for iPod/iPhone music, K.O. MORGAN, JULIE COOK RAMIREZ, JODEAN ROBBINS AM/FM stations or buzzer. iPod and iPhone are not included. Advertising ERIC NIEMAN, ASSOCIATE PUBLISHER QUESTIONS FOR THE DECEMBER ISSUE [email protected] JENNIFER JORDAN 1) What is the number to receive more information about the Idaho-Eastern Oregon Retail [email protected]

Display Contest? ______SANDY LEE [email protected] BILL MARTIN 2) What is the Web address for Oso Sweet Onions? [email protected] ______ELLEN ROSENTHAL [email protected] 3) What is the fax number for Fresh Salad Co.? ______Floral Department Marketing E. SHAUNN ALDERMAN [email protected] Marketing Solutions and Integrated Sales 4) What is the street address for Red Blossom Farms? ______JIM DELEGUARDIA [email protected] ______Send insertion orders, payments, press releases,photos, letters to the editor, etc., to: 5) What is the phone number for SunnyRidge Farm, Inc.? ______PRODUCE BUSINESS ______P.O. Box 810425 Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 6) What year was Edinburg Citrus Association formed? ______E-: [email protected] PRODUCE BUSINESS is published by Phoenix Media Network, Inc. James E. Prevor, Chairman of the Board P.O. Box 810425 This issue was: ❏ Personally addressed to me ❏ Addressed to someone else Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 Name ______Position ______Entire contents © Copyright 2008 Phoenix Media Network, Inc. Company ______All rights reserved. Printed in the U.S.A. Address ______Publication Agreement No. 40047928 City______State ______Zip ______one ______Fax ______Photocopies of this form are acceptable. Please send answers to: DECEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

4 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 41 WASHINGTON GRAPEVINE A report on the inside happenings of government.

SUBMITTED BY ROBERT GUENTHER, SENIOR VICE PRESIDENT, PUBLIC POLICY • UNITED FRESH PRODUCE ASSOCIATION New Opportunities Abound

enator Barack Obama will be sworn paigns in Iraq and Afghanistan and a multi- tious agenda focused on economic relief, in as the 44th President of the Unit- faceted financial-industry rescue package health care and the budget may force immi- ed States on Jan. 20. With expanded have swollen the national debt. Government gration reform to slide on the priority scale. Democratic majorities in the House revenues will slow as a result of the U.S. eco- United Fresh is committed to passage of and Senate, it will be the first time nomic slowdown and global market uncer- beneficial reform that meets the needs of Sin 14 years Democrats control both Congress tainty as Congress seeks to reverse the eco- the produce industry in the new session. and the White House. The public-policy land- nomic slide early by passing a $150-$200 bil- Environmental Protection: Environ- scape will be significantly altered for at least lion economic stimulus package aimed at mental initiatives may find a more sympa- the next two years as committee ratios tilt jump-starting national infrastructure projects. thetic ear in the new administration, which toward the majority and executive branch Congress and the new administration is likely to support stricter interpretations of appointees begin shaping federal agencies. the National Environmental Protection Act, As of Nov. 21, the Democrats’ margin in the Endangered Species Act and the Clean the House increased by 20 seats to 256 over- We look forward to Air Act. During communications with the all with three contests still remaining. This community, President-elect shift provides the largest majority for either working with both Obama has emphasized decisions will be party since 1993-1994. Seven members of the the new political based on sound science with at the 46-member House Agriculture Committee table and with his appointees taking critical will have to be replaced. Nationally, Democ- leaders. . . and our economic factors into consideration. rats defeated 12 GOP incumbents and won Climate change legislation will also likely nine open seats vacated by Republicans. long-time allies. . . be considered, but division among Congres- With two races yet to be decided, Democ- sional Democrats may make consensus diffi- rats increased their seats in the Senate by will need to finance their priorities and will cult. Absent a consensus in Congress, the seven. The Democrats can reach the 60-seat look to various industries to help foot the new administration’s Environmental Protec- majority necessary to invoke cloture if they bill. Food and agriculture user fees could be tion Agency (EPA) and State Department win in Minnesota and Georgia and if both increased in targeted areas, including may push a number of climate change-relat- Independents continue caucusing with the inspections, futures trading and ed clean-air initiatives, including possible Democrats. The two undecided Senate races U.S. Department of Agriculture (USDA) reg- adoption of the Kyoto Protocol and broader hold interesting potential for the produce ulatory and marketing programs such as regulation of -gas emissions industry. In Georgia, the ranking Republican Animal and Health Inspection Service under the Clean Air Act. on the Senate Agriculture Committee and (APHIS) biotechnology approvals. Trade: Renewal of the Trade Promotion longtime advocate of the produce industry Food Safety: A number of food-safety Authority is unlikely in the short term and Saxby Chambliss is facing a run-off election. bills were introduced in the last Congress. the multilateral and bilateral trade agenda In Minnesota, on Day 3 of the recount, Democratic Rep. Henry Waxman (CA-30) will be very light. Instead, the U.S. Trade Republican Senate Agriculture Committee and Rosa DeLauro (CT-3) and Sen. Tom Representative will likely focus on investiga- member Norm Coleman had a 136-vote Harkin (IA) and Richard Durbin (IL) have all tions of alleged trade disputes and enforce- advantage over Democratic challenger Al introduced legislation pushing for oversight ment of existing trade laws and agreements. Franken with 2.9 million total votes cast. of food-safety issues confronting our indus- There is also likely to be an increase in the The Democrats’ improved position in the try over the past few years. It is likely they number of dispute settlement cases filed Senate empowers them to more efficiently will be reintroduced in the 111th Congress, under the World Trade and pursue their agenda. Republicans, however, and their sponsors will look to the new North American Free Trade Agreement by will maintain significant power, if the administration to bolster their consideration and against the United States. Democrats do not get the 60-vote majority. Immigration: Early election analyses No matter which party holds sway, the So, how are the changes in the White indicate a large majority of Hispanics voted produce industry has a reputation for work- House and in Congress likely to impact for Obama and Democratic House and Sen- ing with both sides of the aisle. As we con- issues important to the produce industry? ate candidates. The new Congress will likely front these all-important issues in the 111th Tax and Budget: The Congressional Bud- consider comprehensive immigration Congress and with the new Obama adminis- get Office reported the fiscal year 2009 feder- reform, including earned adjustment status, tration, we look forward to working with al budget deficit may reach $1 trillion. Enti- a revamped E-verify and temporary worker both new political leaders and our long-time tlement programs, continued military cam- program and employer sanctions. An ambi- allies in Congress.

6 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 29 THE FRUITS By James Prevor OF THOUGHT President & Editor-in-Chief Counting Our Blessings

oward the end of 1992, Queen Elizabeth II gave a speech footprint stores, such as ’s Fresh & Easy and Wal-Mart’s new in which she declared herself not unhappy to see that Marketside concept and niche concepts, such as Sam’s Club’s new year finished: “1992 is not a year on which I shall look Más Club, focused on Latinos, and ’s new GreenWise concept, back with undiluted pleasure. In the words of one of my attempting to deliver “green” food without attitude. All these and more sympathetic correspondents, it has turned out to more are providing new venues for selling fresh produce. Tbe an Annus Horribilis.” And there are reasons to think things may be getting better for The Queen did not invent the phrase but she popularized it, and consumers: The American Automobile Association tells us that on annus horribilis, which is Latin for “horrible year,” has since entered July 17, 2008, the national average price of hit an all-time into the lexicon. high of $4.12. As of Dec. 2, 2008, the price had declined for 76 con- With the stock market down and “crisis” in the air, is it right to secutive days and was down to $1.81, the lowest since 2005. That is look at this year drawing to a close as an annus horribilis for us all? an awfully big savings for consumers all across the country. Sud- We have our challenges and it is not trivial when people lose their denly, there is a boom in refinancing as consumers look to take life savings because their homes suddenly have negative equity or advantage of the decline in mortgage rates. This will increase dis- their 401-Ks are decimated. Still, it would be ahistorical to think this posable income for many. is the “worst of times.” Yes, we are in a reces- Despite all the wailing about how bankrupt sion and have problems with foreclosures, but everyone is, sales on so-called Black Friday, it is worth reminding ourselves that our 6.7 per- the day after Thanksgiving that is traditionally cent unemployment rate means that 93.3 per- Fresh produce the biggest sales day of the year, actually rose 3 cent of all Americans who want a job have a percent from the previous year. On so-called job. TransUnion reports 3.53 percent of mort- sales are on a Cyber Monday, online sales were up 15 per- gages in America are delinquent, which means cent over 2007. 96.47 percent of Americans are paying their to finish Sure, many retailers and are not mortgages in a timely way. doing well, but others, such as Wal-Mart and It has been a good year in other ways as well: 2008 at an McDonald’s, are thriving. Even upscale retail- For the first time, life expectancy surpassed 78 ers are starting to adjust. After suffering dou- years as it rose for men and women, for blacks all-time high. ble-digit sales declines month after month, and whites. There were declines of more than 6 Saks Fifth Avenue is working with manufactur- percent in deaths from stroke and respiratory ers to offer discounts on high-quality, stylish disease, a drop of more than 5 percent in deaths from heart disease and its sales drop in November shrunk to only 5.2 percent on and diabetes. In fact, despite all the talk about the epidemic of dia- a same-store sales basis. betes caused by obesity, the decline in deaths from diabetes pushed Queen Elizabeth II used the phrase annus horribilis as an allusion that disease out of the Top 5 diseases and allowed Alzheimer’s dis- to a famous poem by John Dryden. His poem, published in 1667 ease — which stayed about the same — to become the fifth most about the events of 1666, was entitled Annus Mirabilis, a Latin phrase deadly disease in the country. Flu and pneumonia deaths dropped by that translates as “year of miracles” or “year of wonders.” What was so 13 percent and infant mortality dropped 2 percent. wonderful about 1666? It was the year of the Second Anglo-Dutch One other thing: Fresh produce sales are on a track to finish 2008 war, and the British naval fleet fought three brutal battles. The year at an all-time high. In fact, many good things happened in the fresh was also marked by the Great Fire of London, which destroyed the produce industry this year: A new Farm Bill for the first time dealt homes of about 70,000 of London’s 80,000 inhabitants. seriously with the industry’s concerns and included important new So why did Dryden see 1666 as a wonder? Well, Britain wasn’t initiatives, such as the USDA School Fruit & Vegetable Snack pro- destroyed in battle and a great king, Charles II, would rebuild the City gram, which will generate benefits in the form of increased con- of London. Besides, 1666 contained “666” — the Number of the Beast sumption for years to come. The industry-wide 5-A-Day promotion from the of Revelation — and so was expected by many to be dis- was successfully transitioned to a new, more progressive Fruits & astrous. When all that happened is the whole city burned down and Veggies More Matters program. PMA transformed its dated education made everyone homeless, Dryden thought it cause for celebration! foundation into a modern Foundation for Industry Talent and is clos- Perhaps this is a lesson for us. It is easy to fall into despair, but ing in on raising $5 million to help attract and retain the best and most of the human race, for most of history, has had things far brightest people for the produce industry. Fresh Express presented worse than we do, recession or not. Perhaps at this holiday season, the results of its research effort to help enhance food safety while we can look to our families and friends and count our many bless- the Center for Produce Safety started funding other research efforts. ings. Tomorrow is a new day, 2009 is a new year, and we have every There has also been an explosion of new retail concepts: small reason to think we can make it a great one. pb

8 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 64 A Commitment To Your Future

s I write this, PMA is putting the fin- ishing touches on our 2009 business plans and I expect many of you are, too. I can imagine what’s in your hile professional development is plans — new products, market important, it’s also critical to Aexpansion, facility upgrades. Those are essen- tial, but what about a plan for attracting and compete for tomorrow’s top talent. retaining leaders to manage your business in W the future? If finding and developing talent is not one of your top business priorities, your other objectives may not matter in five years — and certainly won’t in 10. It’s no secret the produce industry com- petes with other industries for talent. That Next month, PRODUCE BUSINESS and Cornell However, the foundation cannot grow shortage will accelerate, as the oldest baby will again sponsor the annual PMA without broad commitment, financial sup- boomers begin to retire in 2011. It is more Leadership Symposium Jan. 14-1in Dallas, port and participation. It will need your help imperative than ever to groom leaders now to brought to you by PMA FIT. Each year the to realize its future plans to create new first manage and then lead our produce sup- symposium offers leadership training with training and education tools, a visiting pro- ply chain into the future. Those of you who today’s top leadership experts and designed fessor program and other products to were at Fresh Summit in Orlando couldn’t fail for executives looking to take their skills to encourage employee loyalty and retention. to hear the steady drumbeat from industry the next level. The collegial, intimate environ- PMA and many leading companies have leaders focusing on this imperative and what ment allows up to 100 attendees to come made large financial commitments. I PMA is doing to address it. together to share ideas, discuss business encourage all of you to join us now to sup- In a recent survey, PMA members told us trends, examine how to manage tomorrow’s port the foundation’s work — with your repeatedly that finding and keeping good, workforce, learn how to be a maverick thinker money, your time, or preferably both. Visit quality people is the most critical challenge and more. I guarantee you will walk away www.pmafit.com for more information. facing their companies. But it’s not only about with a newfound passion for your business We must also develop the talent we cur- finding the right people — it’s also about con- and a Rolodex full of new colleagues. rently have. PMA recently made two excit- necting with the next generation, one that’s While professional development is impor- ing new additions to our portfolio of profes- been raised on cell phones, iPods and blogs. tant, it’s also critical to compete for tomor- sional development tools. The PMA Advan- These younger workers also expect more pro- row’s top talent. The 2-year-old PMA FIT’s tage: Custom Training program delivers fessional development opportunities — and mission is to attract, develop and retain tal- over 100 professional development courses we must deliver. ent. The most visible activity so far is the in 17 different subject areas — from com- So what does all this mean for you? It Pack/PMA Career Pathways Fund, which has munication skills to change management — means now is the time to invest in profes- had great success raising the visibility of our tailored to your company and delivered at sional development that educates your staff industry at leading colleges in the United your offices. E-ssentials is a Web-based and expands their skills. It means now is the States and abroad. In Orlando, the students, produce training platform designed with time to introduce students to your company faculty and alumni of the program highlighted and for retailers, from store associates to through internships, scholarships and men- the value of this outreach. Other foundation department managers. Its online courses are toring programs to energize and excite them activities to date include hosting a job available 24/7/365, with topics ranging about the produce industry. It means you for entry- and intermediate-level positions, from the practical to the strategic. need to grow as a leader, need to connect with mentoring programs and scholarships that The talent challenge is ours to take. We new generations in the workplace and need to immerse students by bringing them to PMA’s must make tomorrow’s leaders part of our set an example for them. Conference. So far, of the stu- community today. We must invest in Here are a few of the ways PMA and our dents who have graduated since attending today’s staff and encourage their long-term Foundation for Industry Talent (FIT) is Fresh Summit on foundation scholarships, commitment to the industry. We must grow addressing these needs — and you can expect more than 50 percent have accepted positions, as individuals, both personally and profes- to hear much more about others in the next from marketers to buyers, with PMA member sionally. PMA is here to help you prosper — few months. companies. That’s a remarkable success rate! because your success is ours, too.

10 PRODUCE BUSINESS • DECEMBER 2008 Attracting Talent Beyond The Abstract

s we read Bryan’s essay, we can’t family connections or the interests of their fac- help but recall the adage, “The ulty advisor or even who their friends are — answer you get depends on the ques- these students would have disproportionately he secret to tion you ask.” We may not be asking wound up in produce under any circumstances. the right questions. Yet even if we accept that every single attracting and AWhen individuals decry being “unable to scholarship student who wound up working retaining high- get jobs,” they don’t necessarily mean they in the produce industry would not have done T cannot get any job, anywhere, doing anything so otherwise — that still doesn’t answer the quality people is to at any pay. If you ask the right questions, you question as to the utility of these programs. In learn they cannot find a job a) in their locale, order for them to be deemed useful to the offer high-quality jobs. b) without an excessive commute, c) in the industry, we actually have to be creating addi- field they want, d) doing a job they are inter- tional jobs or, at least, improving the quality ested in, e) getting paid on terms they prefer of those holding produce-industry jobs. We McKinsey & Co. or Goldman Sachs. If that sit- — say salary as opposed to straight commis- just have no data whether this is happening. uation changes and the opportunity is more sion, f) with a benefit and compensation In other words, certain jobs in the industry constrained because of the financial crisis, the package they consider reasonable. require the intellectual abilities, skill sets and buzz on campus will quickly shift to favor Equally, when executives answer a survey attitudes a graduating senior from, say, Cor- marketing positions at Procter & Gamble and explaining “finding and keeping good, quality nell, possesses. Now if we grant a scholarship other opportunities that will develop. people is the most critical challenge facing to a Cornell student who comes to PMA, is It is easy to think of the trade’s recruitment their companies,” they probably do not mean introduced around and, because employers problems as primarily being caused by the they cannot attract and retain good, quality want to see this program succeed, he or she is ignorance of the student body: “If they only people at any salary, at any benefit package. offered a position in the industry upon gradu- knew us, they would want to work here.” What they really mean is that at the salaries ation, the stats for the program will be good. There is truth there. The produce industry they are used to paying and with the jobs as But the industry question is whether our is addictive, and if we can expose people, we now structured, they worry about the ability young Cornell alum is just taking a position will win some over. But the real challenge is to attract and retain good, quality people. from another graduate of equal ability who how we can develop systems to make each One completely reasonable response is to didn’t happen to win the scholarship. individual more productive — then we can turn up the marketing effort. It is true little In other words, if Wal-Mart hires a PMA use that increased earning power to provide children in American do not grow up dream- scholarship student as a junior buyer, that is the pay, benefits and atmosphere to attract ing of working in the fresh produce industry. great but does it mean Wal-Mart wouldn’t high-quality people to the industry. People rarely see the infrastructure that have filled that position without the PMA pro- The secret to attracting and retaining high- brings produce to the table, so an industry- gram? And if it would have, what did the quality people is to offer high-quality jobs. wide effort to raise awareness and put the industry accomplish by giving the scholarship? The PMA Foundation for Industry Talent can produce industry on the career radar screen is There is a real danger the industry will promote the produce industry as a career reasonable and appropriate. focus excessively on attracting and retaining opportunity. But it could also help the indus- Yes, the Pack/PMA Career Pathways Fund as abstract principles instead of focusing on try to benchmark its opportunities against is a fantastic program and the industry is making the jobs sufficiently desirable that those of alternative career paths. eternally in the debt of Jay and Ruthie Pack people are attracted to the industry and want What are the job opportunities on a termi- for initiating and funding the program and to to stay in the business. nal market? Who might be a candidate for PMA for organizing and sustaining it. That works pretty efficiently at dis- them? Why might those candidates prefer to many a student who might have wound up in seminating this type of information. A few work elsewhere? Can we alter the jobs to another industry winds up in produce after years ago, the front pages were filled with the make them more appealing? PMA FIT could being exposed to the PMA convention is sim- news that for the first time ever the editor of help the industry by shepherding this thought ply beyond any reasonable doubt. the Harvard Law Review had accepted a posi- process for job classifications and business Unfortunately, the over-50 percent number tion in investment banking. Children don’t classifications throughout the industry. Bryan mentions is probably less meaningful typically dream of growing up to be invest- We have found that if the product is good than we might hope. The scholarship students ment bankers. Same thing with management — in this case if the job opportunities the are not selected randomly. It is highly likely consulting, yet students in good schools have industry offers are compelling — the market- that in one way or another — perhaps due to for years learned there were opportunities at ing effort tends to be far more effective.

DECEMBER 2008 • PRODUCE BUSINESS 11 PRODUCE WATCH NEW PRODUCTS UNITED FRESH PRODUCE ASSOCIATION WEIGHPACK SYSTEMS, INC. WASHINGTON D.C. MONTRÉAL, QC, Kam Quarles was hired as vice president of Stephen Farruggio has joined the sales team. government affairs. A veteran of agricultural With more than 25 years experience in the policy and the inner workings of Congress, he packaging industry, he will be responsible for has served for the past four years as the vice managing the New Jersey, New York and president of government affairs for the National Pennsylvania territories. He previously worked Council of . He will help for Ampak, ITW Mima Packaging Systems and address key policy issues that impact the fresh Allied Automation, Inc. produce industry.

NORTHERN PLAINS POTATO GROWERS ASSOCIATION Mario Medina has joined the sales team. He EAST GRAND FORKS, MN brings more than 20 years of experience in the Chuck Gunnerson was named interim packaging industry and he is fluent in English president. He previously served as chairman of and Spanish and can speak basic Portuguese. the Red River Valley Potato Growers Association Located in Miami, FL, he will be responsible for (currently NPPGA), president of the National managing Southeastern states as well as Central Potato Council and chairman of the Northern and . Crops Council.

SMURFIT-STONE CONTAINER CORP. DULCINEA FARMS, LLC CHICAGO, IL LADERA RANCH, CA Larry Tignor was hired as general manager John McGuigan was appointed vice president of the Calpine Corrugated box plant in Fresno, of sales and marketing. He previously held CA. He brings more than 40 years of industry senior management positions with Sunkist experience working in scheduling, Growers, where he led sales and operations, built customer service, sales and management. solid business relationships and continuously His duties include overseeing the Calpine improved efficiencies. His duties include container operations. a comprehensive and powerful sales and customer service team.

Reader Service No. 300

WASHINGTON STATE Frank Mejia was appointed senior manager of ASSOCIATION operations for . He previously served as WENATCHEE, WA general manager for the Southeast Production Bruce Grim was appointed executive director. Unit for Del Monte Fresh Produce. His Active in the tree fruit industry for more than 25 responsibilities include enforcing strict quality years, he served on WSHA’s board of directors standards and strengthening relationships with from 1987 to 1993. The long-time grower will current and new grower partners. continue to serve as manager of The Marketing Associations, a family of four fruit-marketing cooperatives created in compliance with the Capper-Volstead Act.

NEW PRODUCTS PARTY TRAY PROGRAM MIXED FRUIT CUPS Mann Packing Co., Salinas, CA, launched One Stop Old World Enterprise Group, LLC, a Northbrook, Platter Shop, a turn-key program designed to grow IL-based subsidiary of Old World Industries, a sales and create incremental peak holiday sales leading privately held manufacturer, marketer with vegetable and vegetable-centric party trays in and licensing partner to Sunkist, expanded its the produce department. The program is divided refrigerated cut-fruit line with the addition of into five categories: The Traditionals, The Mixed Fruit in 8-ounce plastic cups. The Tailgaters, The Veggiecatessens, Season 8-ounce mixed fruit cups make convenient Specific/Holiday Marketing and In ‘n Outs. and healthful snacks.

Reader Service No. 300 Reader Service No. 301

PRALINE PECANS RED PRINCE APPLES Terry Lynn, Inc., Elgin, IL, introduced Georgia Riveridge Produce Marketing, Inc., Sparta, MI, Praline Pecans to its line of products. Direct introduced Red Prince, a unique specialty from the pecan of Georgia, the pecans variety that is a cross between a Jonathan and are hand selected to assure firmness and color. a Golden Delicious apple. Its attractive, deep They are roasted in a sweet praline mixture, red exterior reveals an extreme crunch with a creating a delicious, rich-tasting treat available juicy, cream-colored flash. Red Prince provides in bulk or retail packages in single-serve, a rich, full flavor with mildly sweet taste pegboard or stand-up bags. excellent for fresh eating, salads and baking.

Reader Service No. 302 Reader ServiceReader No.Service 300 No. 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]

12 PRODUCE BUSINESS • DECEMBER 2008 PRODUCE WATCH NEW PRODUCTS COOL LABELS GRAB-AND-GO Colorama, Santiago, Chile, has developed HEALTHFUL SNACK LINE high-quality, self- produce-industry Aurora Products, Inc., launches the labels that can be used to meet country-of- Aurora Natural grab-and-go line for origin labeling (COOL) requirements. The convenience stores. The line includes labels hold up during international transit and salted roasted almonds, raw almonds, perform well under a variety of circumstances salted pistachios, salted roasted mixed presented by fresh produce shipping. nuts, salted roasted sunflowers seeds, salted roasted cashews, cranberry Reader Service No. 300 health trail mix, Pacific almond trail mix, Rocky MountainReader mix, Service No. 300 unsalted cashews, sweetened banana chips and dried cranberries.

Reader Service No. 304 Reader Service No. 305

SINGLE BAKERS FOR KIDS FOOD SAFETY DIAGNOSTIC TESTS Imagination Farms, Indianapolis, ID, launched Vista Enterprises, Inc., Rio Vista, CA, offers its Disney Garden Single Bakers with QuickAlert, a screening tool able to detect collectable stickers. Disney Garden Single bacterial contamination above background levels Bakers are available from Russet Potato directly from a food product and provide results Exchange (RPE) and Rigby Produce. The on the spot in 20 minutes. The tool does not individually wrapped potatoes weigh about six involve laboratory time, expense or equipment. or seven ounces each, making them The easy-to-use QuickAlert kit comes with appropriate portions for children, and include enough supplies to conduct 50 tests. peel-open labels with collectible stickers.

Reader Service No. 306 Reader Service No. 307

CRANBERRY BREAD MIX ORGANIC AÇAÍ JUICES Concord Foods, Inc., Brockton, MA, introduces its Sambazon, Inc., San Clemente, CA, launched its signature Cranberry Bread Mix with a hint of orangeReader multi-serve organic açaí juices in retail stores. The Reader flavor to complement the sweetness of fresh 32-ounce juices feature organic açaí, a purple cranberries. The bread mixes include a $1-off, in-store palm that grows wild in the Rainforest, coupon good toward the purchase of one 12-ounce bag and are available in original blend and antioxidant of Ocean Spray Cranberries through Dec. 31. Look for trinity. The juices are packaged in fully recyclable the tear-off holiday recipe pad featuring recipes that bottles and have a suggested retail price of $7.99 incorporate Concord Foods mixes and Ocean Spray products on display in your local .

Reader Service No. 308 Reader Service No. 309 Reader Service No. 300 Reader Service No. 300

SWEET GREEN PEPPERS SQUEEZABLE HERBS AND Enza Zaden, Enkhuizen, The , introduces Gourmet Garden, Palmwoods, Queensland, its new line of SweetGreen peppers to the U.S. market. , offers an array of fresh herbs with SweetGreen peppers are sweeter than red or green bell the convenience of dried herbs and the rich peppers because of their extremely high natural sugar flavor of fresh herbs. The squeezable herbs content. Grown in , SweetGreen peppers and spices are available in 10 varieties: are harvested by hand when they are the most mature basil, cilantro, dill, garlic, lemon grass, and have the highest sugar content. oregano, Italian seasoning, chili pepper, ginger and parsley.

Reader Reader Service No. 300 Reader Service No. 310 Reader Service No. 311 ANNOUNCEMENTS MASTRONARDI OFFERS CAMPARI TOMATO PARAMOUNT FARMS NAMED Mastronardi Produce, Kingsville, ON, Canada, offers CLEAN AIR CHAMPION Sunset Campari Brand Cocktail Tomatoes and Paramount Farms, Los Angeles, CA, has been markets them as the most versatile tomato in the selected as a 2008 Clean Air Champion by the kitchen with the perfect balance of sweetness and San Joaquin Valley Air Control District. acidity. The company recently reached a long-term It was chosen because of its significant deal with Enza Zaden, the Dutch seed producer, forReader the contributions to achieving cleaner air through exclusive North American rights to the variety. its solar installations and employee trip reduction measures such as telecommuting, on- site foodservice and van pools.

Reader Service No. 312 Reader Service No. 313

FRESH MARKET EARNS WELL-PICT INTRODUCES WINTER MERCHANDISER OF THE YEAR AWARD STRAWBERRIES FROM FLORIDA The Florida Fruit & Vegetable Association (FFVA), Well-Pict , Inc., Watsonville, CA, intro- Maitland, FL, presented its Merchandiser of the duced winter strawberries from Florida for the Year Award to , Inc., a first time this year. The strawberries are being Greensboro, NC-based chain with 80 stores, for its shipped from December to February. Well-Pict support of FFVA’s Florida strawberry program. The also unveiled a new 2-pound strawberry quality-driven, specialty neighborhood grocer clamshell designed to reduce shipping costs. vigorously promotes Florida strawberries as well The new clamshell was engineered to fit in the as Florida-grown blueberries. same trays as Well-Pict’s popular, recently redesigned 4-pound container. Reader Service No. 314 Reader ServiceReader No.Service 300 No. 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]

DECEMBER 2008 • PRODUCE BUSINESS 13 From The Pages Of The Perishable Pundit Welcome To The Age Of Preposterous Reasoning: Defending The Dignity Of

From Jim Prevor’s Perishable Pundit, Nov. 7, 2008

In our piece Can Whole Foods Survive Prolonged Economic Downturn? needed capital. A year ago people were buying stock in Whole Foods for we said the company was running out of financial flexibility and had $50 a share; now Whole Foods just sold the right to buy 17 percent of five options: the company at $14.50 a share and agreed to pay a dividend while the • Muddle through. By paring back capital expenditure investor holds the preferred. Initially the dividend is 8 percent and can and utilizing its credit lines, Whole Foods may make be lowered after three years if the stock price of Whole Foods is suffi- it through but if we are in for a long recession, there ciently high. is a real risk the company could eventually run out Interestingly enough, the preferred stock sale contains a PIK, or Pay- of money. ment In Kind, option whereby Whole Foods can pay the dividend due • Whole Foods may have to sell stock even at this stock in additional securities. This gives Whole Foods flexibility if earnings price to raise capital and sustain its operational plans. are poor and cash is tight — but it also means Leonard Green & Part- • Whole Foods may find a partner for its British opera- ners, L.P. could end up owning more than 17 percent of the company. tion that is willing to put in capital to sustain the For vendors, the investment is great news as it makes the company operating loss and capital expenditures needed to much stronger financially. grow the division. Whole Foods, which has always had a very division-based procure- • Whole Foods could shutter its U.K. division and ment system, is going to try to leverage its total buying power to get bet- staunch the bleeding. ter deals. Why shouldn’t they join the club? Every retailer does this — • Perhaps Whole Foods could sell itself to another though it can be difficult to sustain a focus on “differentiated product” if retailer better able to carry it through the recession. the focus shifts to reducing costs. Well, Whole Foods announced its earnings and simultaneously We continue to think the executives at Whole Foods are attempting announced it had chosen option two by accepting an investment from to do something that just can’t work. We took this from the same confer- Leonard Green & Partners, L.P. ence call: The quarterly results were tough. Although overall sales were up 13 The brand stands for the highest percent, identical store sales fell 3.3 percent. quality, and over the last several years we have worked hard Total earnings dropped almost 96 percent to $1.5 million or 1¢ per to increase the value choices within our grocery and Whole share. Body departments without sacrificing our standards. We Although the company identified a number of non-recurring charges believe our efforts have been successful since these depart- that hit profitability hard and thus said the earnings situation wasn’t ments are continuing to produce positive comps. While we quite so bad, many of these charges were troublesome for other rea- saw a decline in average transactions in grocery, our average sons. For example, the company paid $5.5 million, or 2¢ a share, to ter- basket size was up, which we believe is a reflection that cus- minate on 13 stores in development, which makes you feel they tomers are making fewer trips but stocking up with more on either didn’t have the capital to fixture and inventory the stores or each trip. weren’t convinced they would be profitable. Our Whole Deal program, launched in July, has helped to Also the company took a tax hit of $6.1 million, or 4¢ a share, to highlight the values we offer within perishables. The program repatriate $60 million in earnings from Canada. Once again, this seems includes a quarterly in-store guide providing specially priced to imply either diminished opportunity — no useful way to invest the product discounts, money-saving coupons and tips, as well as money in Canada — or a need for cash down in Austin. budget recipes. For the July through September period, we saw The Wild Oats acquisition seems to be a big loser. The FTC lawsuit a lift on all items included in the Whole Deal program with against Whole Foods is projected to cost another $15 to $20 million in perishables driving a significant majority of the sales lift. legal fees in fiscal year 2009. Also there are 40 idle Wild Oats stores, and There are some signs of customers trading down within Whole Foods had to increase its reserves associated with these stores, the store as evidenced by sales in our own brands growing because the downturn in the real estate market means Whole Foods three to four times that of branded product. can’t sell or sublease these properties, at least not at what had been the While we realize we are not going to change perceptions assumed values. This cost $14.7 million, or 5¢ per share, in the quarter. overnight, our efforts are gaining some traction in the media, The company also estimates Wild Oats operations lost over $25 million, which we hope will help positively reinforce to our existing or 9¢ per share, in the quarter. In addition, buying Wild Oats means customers that we are offering great values in terms of high Whole Foods took on debt at a time when it probably wishes it did not. quality at a competitive price, as well as helping to educate Although the company raising $425 million through a preferred and entice prospective new customers as well. stock issue was good news — and the market initially reacted favorably They really think there is a “perception problem” that needs to be to it before slipping back — it was good news because the company was “changed,” but we think that any change in “perception” will alienate operating with thin capital. Now, as a better financed company, it can the core customer base. That seems every bit as true today as before probably afford to wait out the recession. Whole Foods issued its earnings. Its only choice is to batten the hatches Selling the issue on the terms they did indicates the company really and live to fight another day. www.perishablepundit.com

14 PRODUCE BUSINESS • DECEMBER 2008 Q&A Q&AWith Ken Schmidt PRODUCE BUSINESS special projects editor Mira Slott caught up with Ken Schmidt, branding guru and former director of communications for Harley-Davidson, following his speech at the Produce Marketing Association (PMA) Fresh Summit 2008 in Orlando, FL.

Q: When you walk into a produce back to safety issues. The reason Harley- department at a supermarket, what is Davidson became unglued was that we your perception? thought the perception of quality was not A: At a major chain, it’s not something I good. We focused on quality, gained parity, haven’t seen a million times. Most produce but if we continued talking quality, we departments are indistinguishable and planted the shadow of doubt. “Better quality, generic. I like to shop in upscale supermar- new and improved,” raises the question that kets. Everything is so beautifully presented what we were selling before wasn’t good. and I’m captivated by produce items I haven’t seen before. Q: Produce executives say skyrocket- ing input costs from product ingredi- Q: You built a cache and identity ents to and transporta- around the Harley-Davidson brand as tion are placing harrowing demands on the cornerstone of your success strategy. ways of doing business. How can a produce company earn con- A: Creating efficiencies and cutting costs sumer loyalty for its product when to counter increased input costs are all in branding is not that prevalent in the industry? Except for a response to a crappy economy. That’s fine and should be done, but few prominent brands, loose produce in bulk those actions are not visual to consumers. That’s internal knitting, displays continue to dominate. Could the trend toward pack- but meaningless to consumers. The produce executive needs to aged items provide that stepping stone? answer the question of his customers and the end consumers: Why A: Branding is value we attach to something. Del Monte Fresh should I be buying your product? I’m always fascinated by dairy- Produce was a brand in my house growing up. I attach value product manufacturers advertising freshness. Is anyone expecting to through comfort. A sticker or logo or other identification, such as buy old milk? Business as a whole is such a copy cat. “We’re green.” creative packaging, provides a visual identity so it doesn’t look Do consumers know, care or expect this? If you’re selling produce, like a commodity. In the produce industry, a company needs to people think “green.” create a brand or identity to carry it through the supply chain. Anything treated like a commodity by the supplier won’t stand Q: Sustainability and corporate responsibility are the big out to the retailer. The majority of bulk produce has to get through buzz words these days. Retailers like Tesco plc, Wal-Mart the buyer in order to be put on the shelf. As a consumer, I’ll go for Stores, Inc., and Co., are building an image on envi- the beautifully presented grapefruit this week if the store pro- ronmentally-friendly behaviors, and suppliers are being motes them well. required to follow suit. Is this the kind of attribute that could win consumers’ hearts or will it just be another mandate for Q: So the supplier’s relationship with the retailer is half doing business? the battle? A: If your company is taking on sustainability, you better do it A: In a supermarket scenario or a club or a Wal-Mart clearly and meaningfully and be ahead of everybody else. If you Supercenter, consumers have bought an item because they were claim a space, that’s where marketing dollars have to go and you allowed to try it. If a shopper sees an item and doesn’t know what it need to tell your story over and over again. If your actions do not is or what it tastes like, he or she needs to be educated. match your words, your image can be damaged.

Q: Consumer confidence has waned with the increase in Q: What is some key advice to leave with our readers? food-borne illness outbreaks and recalls and the media atten- A: Benefits are usually more imagined. We’re emotional beings. If tion devoted to food-safety issues. How should the produce I serve this product, I feel better about myself. Consumers are so industry calm consumers’ concerns? used to never being asked questions. What could we have done differ- A: The industry needs to be proactively talking about food safety ently? Consumers might say they want good customer service, but and putting its weight behind it. In the marketplace, if the industry good service means different things to different people. It’s important is seen as defensive and preoccupied with food-safety issues, it is to follow up. The retailer might think it has to bring in more labor, attracting more attention to the problem. The flip side is to talk up when good customer help might mean smarter signage or more con- the positive benefits of eating produce, freshness, health and taste venient merchandising to get in and out of the store faster. Con- attributes, and not turning off the customer by drawing attention sumers appreciate being included in decisions and feeling valued.

DECEMBER 2008 • PRODUCE BUSINESS 15 BY CAROL M. BAREUTHER,RD

What are the top trends and important issues affecting the produce current PMA chairman of the board, says, “There’s a reason the produce industry in 2009? We asked over 20 of the industry’s movers and shak- industry is referred to as a supply chain, rather than a supply line — ers to gaze into their crystal balls and offer their insights. The responses? because of the bonds that hold us together and the responsibility we Revealing, riveting and a rousing call to action. have for each other, each link to the others. As buyers, we cannot con- tinue to force costs down the supply chain. If we do, one day we’ll find 1. THE ECONOMY AND our favorite growers’ fields are now strip-mall parking lots or housing THE COST OF DOING BUSINESS developments — and our costs will actually increase in the long run.” The economy “will dominate everything,” asserts Bob Gray, CEO of Mike O’Brien, vice president of produce, Schnuck Markets, Inc., the Duda Farm Fresh Foods, Inc., Oviedo, FL. 100-plus-store chain headquartered in St. Louis, MO, notes, “These are Tom Nassif, president and CEO of very serious times. We have some major Western Growers Association (WGA), “As buyers, we cannot continue to issues right now when it comes to sell- Irvine, CA, agrees and adds, “It’s tough force costs down the supply chain. If ing fresh produce. It is not business as for small farmers right now. They need usual. If we, as business people, think we do, one day we’ll find our favorite to plan their crops and at the same time we can operate as we did in the past, wonder what type of credit line they’ll growers’ fields are now strip-mall we may not be in business tomorrow. be able to get and the cost of that cred- parking lots or housing developments This goes for the entire supply chain.” it.” Small farmers who can’t raise the — and our costs will actually increase On the grower side, Gray says, “We needed capitol either go out of business in the long run.” will be searching for ways to provide or are purchased by bigger companies, value, meaning, for example, lower-cost he says. “This ultimately reduces com- — Dave Corsi alternatives, smaller portions, pack sizes, petition and increases price.” Food Markets and perhaps even lower grades of some Uncertainties over the country’s fis- items. Affordability will be the key.” cal health come at a time when the costs of doing business are rising, Taking a more optimistic stance, Tom Stenzel, president and CEO of notes Bryan Silbermann, president of the Produce Marketing Associa- the United Fresh Produce Association (UFPA), Washington, D.C., notes, tion (PMA), Newark, DE. “Fuel, energy, transportation, inputs, packag- “I think we’re probably near the bottom in terms of the economy. Over ing, seeds and — costs are going up across the board. We the past year, we’ve seen restaurants go through a tough time and need to look at how the industry adjusts, for example, enhanced effi- retrench. We’ve seen great success at retail with low-price leaders and ciencies up and down the supply chain.” big-box stores that sell food at rock-bottom prices. These companies did Dave Corsi, vice president of produce and floral operations for Weg- well in a bad economy. I do sense that in 2009 we’ll come out of it and mans Food Markets, the 70-plus-store chain based in Rochester, NY, and pent-up consumer demand will drive re-growth in foodservice with new

16 PRODUCE BUSINESS • DECEMBER 2008 The Next Generation Can’t Wait...

Dedicated to Quality, Safety and Service

Reader Service # 27 menu innovations as well as new product inno- aging their money and purchases better.” Corsi. “It is about instilling a company-wide vation at retail.” Consumers are shopping more by list, says food-safety . PMA’s new chief science No matter what a new economy looks like, Howard Nager, vice president of marketing for officer Bob Whitaker is helping to educate adds William Watson, executive director of the Domex Growers, Yakima, WA. everyone in the supply chain and also helping National Mango Board, Orlando, FL, “We’re in “They are also looking more closely at ads and regulators understand how our business works.” a good business because people have to eat. are willing to visit a couple of stores for the There will be more government scrutiny, For every change, there is good and bad. best deals. Some produce items may become says PMA’s Silbermann. “If after 20 or more Media tell us the downside — it’s up to us to discretionary as consumers try to best target years of deregulation the treasury department is identify the opportunities.” their dollars.” buying , what chances do you think pro- Marcia Mogelonsky, senior research analyst duce has of being left out of this rising tide? I 2. RISING FOOD COSTS think assuring a safe food supply is an appropri- AND CONSUMERS’ RESPONSE ate regulatory role of the federal government.” The Consumer Price Index for all food is “It’s bad enough that Mike Stuart, president of the Florida Fruit forecast to increase an average of 5 to 6 per- consumers think our and Vegetable Association (FFVA), Maitland, cent in 2008, according to the U.S. Depart- product is too FL, agrees and says, “I do see more effort to ment of Agriculture’s (USDA) Economic expensive, but the thought consolidate regulations at the federal level Research Service (ERS), with an additional 4 to that produce will make us rather than at the state or local level. The 5 percent increase forecast in 2009. Price sick will not help in our groundwork for this will be laid in 2009.” increases for fresh produce are on par, with a efforts to sell more To this end, says Corsi, “PMA is enhancing 5.5 percent rise in 2008 and further 3.5 to 4.5 its advocacy role in Washington, D.C. We’ve produce to improve percent increase forecast in 2009. already had one meeting with the Food and “Our costs have increased dramatically this consumers’ health.” Drug Administration [FDA] and plan to have past year and these costs have to be passed on more to ensure they make better use of indus- to the customer, says Schnuck’s O’Brien. “That — Mike O’Brien try resources and knowledge to speed their Schnuck Markets, Inc. means higher . Higher retails mean food-safety investigations in the future.” demand goes down. The fact that consumers Greater efficiencies in identifying a food- are also paying more for gas means they have for the Mintel International Group Ltd., a con- safety outbreak and pinpointing a cause are less money to spend on produce so that com- sumer, media and market research company crucial, says Jim Hertel, managing partner at pounds the problem.” [EDITOR’S NOTE: This based in Chicago, IL, adds, “There may even Willard Bishop Consulting Ltd., Barrington, IL. interview was done before November’s swift be a return to traditional ways. For example, “Efforts aimed at a quick resolution to the prob- and precipitous drop in gasoline prices.] those fresh, local tomatoes instead of lem to restore consumer confidence and pur- Will Wedge, director of produce and floral buying the more expensive imported Italian chases are key.” for Hannaford Supermarkets, the 150-plus- canned tomatoes. Americans like to eat well, If this doesn’t happen, according to Lutz, store chain headquartered in Scarborough, ME, but most consumers now find they can’t “We anticipate the response will become even agrees, saying, “We sold far less asparagus at splurge on everything.” more swift and painful. For example, retailers Easter, for example, than we traditionally have On the foodservice side, says Grant Hunt, will simply sweep implicated products off the in the past. The challenge will be figuring out president of Grant J. Hunt Company, Oakland, shelves. Consumers will throw them out and the price threshold for each commodity in CA, “Some consumers are not necessarily eat- not buy them again. We’ve seen this happen to 2009 and at the same time trying to anticipate ing out less but instead making value-based some extent in the past. One year after the E. changes in consumer buying habits.” choices when they do. For example, Apple- coli outbreak, spinach sales were still down 20 The Perishables Group, an independent bee’s has introduced its three-course classics or percent.” The second tier response “is that con- based in W. Dundee, IL, has a bargain package with three courses for one sumers will push for more packaged goods. looked at how consumers are responding to price to entice these customers.” This helps with contamination and traceability. high food prices, reports Steve Lutz, executive To keep consumers buying produce, says The third tier is a greater emphasis on the pro- vice president. “We’ve seen a greater emphasis Kathy Means, PMA vice president of industry duce-supply chain.” on consumers searching out short-term value or issues, “We need to position produce as a solu- In the near future, says United’s Stenzel, “I trade-down options that stretch their dollar fur- tion — that is, as a meal extender at home, think we’ll see a tight alignment of the supply ther. For example, they may go into the store lower plate cost in restaurants and improved chain. For example, I foresee retailers having expecting to buy apples and purchase grapes nutrition for consumers in general.” maybe three to five suppliers, not 25, for a cer- instead if they find grapes provide a better value tain commodity and these suppliers will be that week. This means a greater emphasis on 3. FOOD SAFETY ON vetted for their food-safety certifications before impulse purchases, especially around promoted THE FRONT BURNER negotiations on price and quality begin.” and seasonal items. We tend to think impulse Safety of our food supply will still be a Food safety must be a global effort, stresses purchases are incremental and high price, but major issue in 2009. “It’s bad enough that con- Chris Nelson, president and CEO, MIXTEC we’re seeing the flip side of this now.” sumers think our product is too expensive, but Group, an executive search firm serving the “Consumers are becoming smarter shop- the thought that produce will make us sick will food and produce industry based in Pasadena, pers because of the economy,” notes Dan’l not help in our efforts to sell more produce to CA. “The produce industry today is global and Mackey Almy, president and managing partner improve consumers’ health,” O’Brien says. we need to create a level playing field.” of DMA Solutions, Inc., a marketing and busi- “The industry is working hard to fix these prob- Jesse Driskill, president of the Fresh Produce ness development company based in Irving, lems and ensure our produce is safe. We have Association of the Americas (FPAA), Nogales, TX. “For example, they’re buying smaller por- to continue this effort.” AZ, adds, “I see legislation enacted by the end tions, shopping more frequently for fresh items Fixing the food-safety problem isn’t simply of next year to put everyone on the same play- and buying more bulk produce. They’re man- about establishing a program, adds Wegmans’ ing field as far as food-safety regulations.”

18 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 46 However, too many or too strict regulations produce supply chain. cant in light of today’s childhood obesity crisis.” could have the adverse effect of curtailing “The action plan of the Produce Traceabili- The government’s continued emphasis on trade. Hunt of Grant J. Hunt says, “Regulations ty Initiative was recently completed,” explains nutrition “offers third-party credibility and that in right now are so onerous and expen- Corsi. “It provides a map to enhance our positively impacts our product,” notes Seth sive that many companies think, ‘Is it worth it?’ existing internal — company-specific — trace- Pemsler, vice president of retail, Idaho Potato We have to avoid that backlash.” ability capability and to move us to external — Commission (IPC), Eagle, ID, DMA’s Almy notes “ongoing communica- supply-chain-wide — electronic traceability.” Health and wellness will continue to pro- tion regarding food safety, not just when there’s Consumer confidence in the safety of fresh vide opportunities for the industry to market its a crisis,” is needed on the food-safety front. produce must be rebuilt “and traceability is the produce, relates NMB’s Watson. “I foresee this “We have one of the safest food supplies in the driver,” notes Ron Lemaire, former CPMA exec- more in foodservice than retail. Not just listing world and we need to get that story out.” utive vice president and director of marketing. a commodity’s name and what it provides, but Wegmans’ Corsi agrees and adds, “PMA is a chance to demonstrate our creative capabili- training industry leaders in crisis communica- 5. BOOSTING CONSUMPTION ties because there isn’t a one-size-fits-all tions, so that they can provide a face to the The industry has to find a way to boost fruit approach. I think there will be smaller guerrilla industry to the public; and helping to develop and vegetable consumption, according to Tom marketing techniques using the or - consistent messaging for industry-wide use, so Lovelace, executive vice president of Colum- geted marketing based on specific health our many voices are speaking consistently.” bia, SC-based McEntire Produce and UFPA issues. This is such a positive piece for our chairman of the board. “Fortunately, the 2008 industry to play on right now.” 4. TRACEABILITY Farm Bill passed and we can look forward to Harry Balzer, president, NPD Group, Inc., a THROUGHOUT THE SUPPLY CHAIN its implementation in 2009. The fresh fruit and global market research firm based in Port Traceability, stresses Wegmans’ Corsi, “is a vegetable snack program in schools and fresh Washington, NY, takes this concept a step fur- key component of a food-safety culture.” produce now added to the WIC [The Special ther. “I think the trend for next year is about MIXTEC’s Nelson agrees and adds, “Trace- Supplemental Nutrition Program for Women, what we can add to our diet for good health ability, at the item level, straight back to the Infants, and Children] food package are won- rather than what should be eliminated. Fresh exact field is needed. This data and derful ways to educate a whole new genera- produce offers the advantage for what it adds.” is available today.” tion of consumers.” To encourage greater produce consump- Last year, PMA, UFPA and the Ottawa, ON- Nelson also views the 2008 Farm Bill as a tion, says Duda’s Gray, “We have to continue based Canadian Produce Marketing Associa- positive. “I think we’ll see provisions in the to bring a higher level of consumer interest to tion (CPMA) formed a joint Produce Traceabili- Farm Bill make both an immediate and long- the business of fresh-food sales in all venues. ty Initiative to drive broad adoption of consis- term impact on consumption and ultimately We need to use seasonality — peak appear- tent traceability best practices throughout the lead to a change in eating habits. That’s signifi- ance, abundance and flavor — as a tactic. We 11 60 # # Reader Serv i ce Reader Serv i ce

20 PRODUCE BUSINESS • DECEMBER 2008 should explore and add exotic tastes and looks the high cost of business with the sustainability growing regions to reduce dependency on fos- if we can. We’re dangerously close in retail to movement,” PMA’s Silbermann adds. “This sil fuels — which also taps into the ‘locavore’ ‘stack it high and sell it cheap’ and competing requires a top-to-bottom re-examination and movement — but also in building relationships primarily on price. If price is all we are about, fundamentally impacts how the produce sup- with consumers who want to hear our story we’re doomed.” ply chain is created. For example, the industry and establish connections with us, whether we Some grower/shippers are infusing excite- is now highly centralized. Small frequent deliv- are across the state or across the country or ment into the produce department by introduc- eries are the norm. We need to think about world,” says Wegmans’ Corsi. ing new varieties. “You see it today with per- packaging in a different way. There are tremen- This communication, according to DMA’s sonal-sized watermelon and lots of ‘baby’ dous cost-saving opportunities. True sustain- Almy, “needs to be less greenwashing and more items,” explains Pemsler. “For us, it’s hot prod- ability adds to the bottom line.” fact-based.” ucts such as fingerlings and creamers. This A return on investment can be had “not just abundance doesn’t replace traditional items in reducing operational costs, such as 7. LOCALLY GROWN, but expands the choices for consumers.” water/energy conservation, land preservation, GLOBALLY GROWN At the same time, the industry is experienc- transitioning to biofuels and finding alternative Locally grown is now the gold standard, ing supply-and-demand issues, says Ron McCormick, vice president and divisional mer- chandise manager for produce and floral, Wal- mart Stores, Inc., the 3500-plus-store chain based in Bentonville, AR. “Due to a variety of reasons, we are currently seeing for one of the first times in decades when a number of major fresh commodities in the United States are not yielding far more product than consumer demand. Several major commodities such as apples and potatoes have actually had periods of significant shortages. The extended period of poor exchange rates on the dollar has disrupted normal channels of . Throughout 2009, we will see the supply chain adjust and react to this marketplace without chronic over- production and supply chains in flux, and the resulting retail inflation.”

6. THE SUSTAINABILITY ISSUE As weather, fluctuating gasoline costs and popular media continue to bring home aware- ness of global warming and the affects of lifestyle on the environment, “Sustainability will drive more consumer decisions,” says McCormick. “We will see increased demand for product grown and produced in responsi- ble and sustainable ways, and packaged in containers made from renewable resources. In the customers’ mind, sustainability, food safety, food and where their food comes from will all be tied up in the same package.” Joe Pawlak, vice president of Technomic, Inc., a consulting and research firm based in Chicago, IL, echoes that asser- tion. “Even though the economy is down, con- sumers still want corporate responsibility. That’s why, for example, some restaurants don’t serve bottled water, only tap. Or they print ‘We use biodegradable products’ or ‘local suppliers’ on their menus. In a way, sustainabil- ity has become a way for some businesses to differentiate themselves.” 42

According to FFVA’s Stuart, sustainability # “is different to different people — social, envi- ronmental and, if you own a business, prof- itable. You can’t have these things in isolation. They are three legs of the same stool.”

“To be truly sustainable in industry is to tie Reader Serv i ce

DECEMBER 2008 • PRODUCE BUSINESS 21 notes Melissa Abbott, senior trends spotter and their heads around. Instead, juices labeled, for quently, schedule around using products so analyst for The Hartman Group Inc., a consult- example, that they provide two apples, three they don’t go bad, the preparation — all the ing and market research firm based in Belle- plums and 14 grapes per serving, are some- things that don’t make fresh foods shelf stable. vue, WA. “Organic has fallen below local. thing consumers can really understand. This The big question will be, ‘Will consumer’s buy That’s because local has so many adjectives type of simplicity sells.” their fresh foods out or will they look to food- around it — sustainable, fresh, food miles and However, she adds, “Consumers are often service to deliver to them at home?’” more nutrition. All of these are positive points wary of trying a new produce item if they don’t The “Power of Fresh”, as United’s Stenzel to consumers. You can just feel the energy know what it is, how to pick it and how to use terms it, has manifest itself in a few ways. “For around the term.” it. What’s exciting is retailers such as Trader example, [Pleasanton, CA-based] Safeway Jan DeLyser, vice president of merchandis- Joe’s [based in Monrovia, CA] bringing in introduced its lifestyle format, Ingredients for ing for the California Avocado Commission products such as freeze dried mangosteen, gin- Life, as part of a re-positioning that has proved (CAC), Irvine, CA, concurs, “Consumers have a hugely successful. [Cheshunt, England-based] newfound infatuation with farmers, what we Tesco opened in the United States last year call ‘farmer chic’ or connecting a face with the “Due to a variety of with its Fresh & Easy stores. [Cincinnati, OH- place their food is grown. This was the basis of reasons, we are currently based] Kroger continues to expand its Fresh our ‘Hand Grown in California’ advertising seeing for one of the first Fare concept,” he explains. “There’s also campaign held earlier this year.” times in decades when a becoming a real blurring between traditional Hannaford’s Wedge has seen growing con- number of major fresh retailers and convenience stores. We haven’t sumer demand for locally grown produce. “We commodities in the United thought of C-stores as offering fresh produce, have over 220 local growers we buy from for States are not yielding far but now that’s part of the landscape.” our Close to Home program. However, since Convenience won’t go away as a huge we are in the Northeast and have a short win- more product than growth area in our business, predicts ’s dow of availability, it forces us to look for other consumer demand.” McCormick. “The frozen-food industry is sources. In doing so, for example, we discov- exploding in the use of steamable and ered a broccoli deal available out of Florida. — Ron McCormick microwavable produce that can be prepared in This is three days closer than sourced out of Walmart Stores, Inc. five to six minutes, often including delicious California and less expensive in freight. I can sauces and flavors. Unlike the frozen blocks of pass on this competitive price to customers.” decades ago, these fruits and vegetable often In the future, says Willard Bishop’s Hertel, ger chips and goji berries incorporated in a retain their flavor, nutrients, and appearance as “We’ll need a lot more clarity on the definition trail mix. These products are ready-to-eat and a well or better than fresh. Some speculate that a of locally grown. Is it sourced from within 50 low-risk purchase for the consumer. They difficult economy will retard the growth. I pre- miles? The same state? There’s more smoke break the barrier and may carry over to the dict it will do just the opposite. Increasingly than fire and it’s a topic we have to come to produce department where consumers may people want to eat more healthfully and feel grips with. For example, how does locally then be tempted to try the fresh form.” good about their foods. People are still time- grown fit in standard merchandising practices? On the foodservice side, “Restaurants will starved, the economy will send stay-at-home There are few places other than California that continue to struggle with sales due to the econ- moms back into the workforce and the pressure have locally grown strawberries available for omy,” Technomic’s Pawlak says. “This will lead will only grow. As more people try to address Mother’s Day. The question is then, how do to lots of product development in that opera- tight money by eating at home, they will be we manage merchandising promotions with tors will look for ways to make it exciting for even more interested in buying convenient the reality of produce today?” customers and give them a reason to spend items, and our industry will need to respond.” Local, adds CPMA’s Lemaire, “isn’t the only their precious dollars. For example, McDon- game in town given we need a year-round ald’s [based in Oak Brook, IL] has introduced a 10 . IMMIGRATION AND LABOR food supply.” chicken breakfast sandwich. They’ve taken Immigration, says FFVA’s Stuart, “is a mas- Hannaford’s Wedge agrees. “I remember my chicken left over from other day parts and sive cloud over our industry. It’s a highly com- grandmother telling me of the days when she introduced it to breakfast to drive traffic and plex topic and the nation is so polarized, but could only buy navel oranges in season. Now, increase same-store sales. This type of product we do need a Congress that is willing and has customers expect navels 24/7 and the job of the development requires no new equipment, cur- the courage to pass this legislation.” retailer is to find them. I enjoy the challenge of rent suppliers are the same and maybe just one The labor issue reaches many levels, notes finding a commodity any time of the year and or two new ingredients are required.” Domex’s Nager. “On the grower side, there on any continent. At the same time, consumers Duda’s Gray agrees, saying the current eco- needs to be an adequate labor force to pick today expect their produce to be available, nomic climate “does present opportunities for and pack product. On the retail side, availabili- safe, high quality and at a constant price fresh produce to compete with or displace pro- ty, training and retaining are needed.” whether it comes to the store on the back of a tein as a lower cost and effectively tasty and Recruiting, retention and development of pickup truck or by train, plane or vessel.” filling alternative in foodservice.” industry talent is a trend that will continue, according to Wegmans’ Corsi. “It’s critical in 8. NEW PRODUCT DEVELOPMENT 9. THE POWER OF FRESH AND this very competitive world we live in to attract New products that tempt consumers to eat THE DRIVE FOR CONVENIENCE and retain the best talent for our industry. Weg- produce, and eat more produce, will be in- Fresh is the mantra of the day, says The mans has the belief that we must take care of demand both at retail and foodservice. Hartman Group’s Abbott, “or as close to fresh our people first and ultimately our people will According to The Hartman Group’s Abbott, as possible.” — and they do — provide incredible service to “Snack bars that say they contain a serving or Consumers may want fresh foods, says our customers. Wegmans exemplifies this two of produce have been popular, but they’re NPD Group’s Balzer, “but they don’t want the through scholarship programs, intern programs, a tough concept for most consumers to get hassle. By hassle, I mean the need to shop fre- training programs and many others.” pb

22 PRODUCE BUSINESS • DECEMBER 2008 Marketing For A Good Cause (Even In Bad Times) Part 1 As Cause Marketing becomes increasingly popular, suppliers and retailers can use it as an additional marketing tool as well as an opportunity to do something good.

BY JODEAN ROBBINS This is the first part of a 2-part series. Part 2 will cover the Pink Ribbon Produce Program, UNICEF and other socially responsible causes.

Cause marketing, also known as cause brand- recalls, creating a more positive image for the pro- ing or cause-related marketing, is a business duce department,” suggests David Hessekiel, presi- strategy that helps an organization stand for dent of the Cause Marketing Forum, Inc., Rye, NY. a social issue to gain significant bottom-line “Since eating fresh produce has so many positive and social impacts while making an emotion- health associations and providing fresh produce to al and relevant connection to stakeholders. the hungry is an urgent need, it makes cause mar- keting particularly fertile ground for this industry.” “It is not a company’s overall corporate respon- “Cause marketing is a great way for retailers to sibility efforts or even its philanthropy,” explains provide a positive experience for shoppers and the Sarah Kerkian, senior insights associate for Cone, a purchases they make,” agrees Monique McLaws, strategy and communications agency in Boston, marketing manager for Dulcinea Farms in Ladera MA. “Rather it’s one strategy where companies can Ranch, CA. “These programs typically help increase bring their commitment to social issues to life by traffic and product demand. Produce departments tapping marketing resources and channels.” are ideal for promoting charitable and social causes As companies ramp up cause marketing efforts, since produce represents a healthful lifestyle.” the benefits for all continue to grow. “Supermarket “We encourage retailers to actively support produce executives, like other marketers, have cause marketing in produce because we believe it is great opportunities to engage consumers with a great way to help important causes while leading cause marketing impacting sales and, in an era of to increased consumption of fruits and vegetables,” adds Heidi McIntyre, executive director of Produce for Kids (PFK), Orlando, FL. Cause marketing offers another way for retailers and suppliers to stay competitive. “Every retailer competes for the highly sought-after consumer,” says Kerkian. “To secure a competitive advantage, we’ve seen big-box retailers such as Wal-Mart [Ben- tonville, AR], Target [Minneapolis, MN], Sears [Hoff- man Estates, IL], Home Depot [Atlanta, GA] and Lowe’s [Mooresville, NC] all recognize the power of communicating their commitments to social issues, particularly in the communities in which they operate. For many, cause marketing has been a key strategy to secure a license to operate, to recruit employees and to gain competitive differentiation. Retailers, in particular, have a huge asset to lever- age — the millions of consumers who walk through their doors, as well as their suppliers. When retail- ers integrate these two things, they can raise funds and awareness for causes unlike, really, any other

Photo courtesy of Produce For Kids industry. For example, Wal-Mart raised over $35

DECEMBER 2008 • PRODUCE BUSINESS 23 panies to address in their cause programs are consistent with growing domestic and The Programs global needs. Kerkian explains, “The issues identified include education, economic development, health and disease, access to he following worthy causes are dis- America’s No. 1 and No. 3 killers, and all clean water, environment, disaster relief cussed in Part 1 of Marketing For A other cardiovascular diseases claim more and hunger.” TGood Cause (Even In Bad Times). Part 2, than 870,000 lives a year. In fiscal year which will appear in January, will cover the 2005-06, the Association invested more HEALTH-ORIENTED CAUSES Fisher House Foundation, Suan G. Komen than $543 million in research, professional Teaming up with health- or disease-ori- Breast Cancer Foundation (and its Pink Ribbon and public education, advocacy and com- ented programs fits well with produce. “If programs), Special Oympics and UNICEF. munity service programs to help all Ameri- we can create greater awareness of proper American Diabetes Association, cans live longer, more healthful lives. eating habits, it can help prevent illness in Alexandria, VA: The American Diabetes Children’s Miracle Network, Lake the long term,” states Bud Floyd, vice presi- Association is leading the fight against the City, UT: These non-profit provide dent for C.H. Robinson Worldwide, Inc., deadly consequences of diabetes and fight- the finest care, research and community out- Eden Prairie, MN. “We try to look at the ing for those affected by the disease. The reach to help kids of every age and back- Association funds research to prevent, cure ground overcome every imaginable disease and manage diabetes, delivers services to and injury — including asthma, broken bones, hundreds of communities, provides objective cancer, sickle cell anemia, pediatric AIDS, and credible information, and gives voice to muscular dystrophy and serious injuries. those denied their rights because of diabetes. PBS Kids, Arlington, VA: This group pro- Founded in 1940, its mission is to prevent vides educational initiatives and program- and cure diabetes and to improve the lives of ming to educate kids about healthful eating. all people affected by diabetes In response to the increased number of chil- American Heart Association, Dallas, dren facing risks from childhood obesity, PBS “To date, Produce for TX: Founded in 1924, the American Heart Kids kicked off a children’s health initiative to Association today is the nation’s oldest and strengthen existing health-related resources Kids has raised nearly largest voluntary health organization dedi- and build a cohesive framework for public cated to building more healthful lives, free of media to encourage kids and families to $2 million for these heart disease and stroke. These diseases, make more healthful lifestyle choices. pb important nonprofit .”

million for the Children’s Miracle Network money or time, are important, and 65 per- — Heidi McIntyre [Salt Lake City, UT] in just a few weeks.” cent find emotional incentives for involve- Produce for Kids ment important. STUDY PROVES SENTIMENT While the studies were done on grocery As the term cause marketing reaches its items, Cone feels the results of both studies 25th anniversary, the 2008 Cone/Duke Uni- are applicable to produce. “Absolutely, we versity Behavioral Cause Study released by believe they would be translated to perish- Cone and Duke University’s Fuqua School ables,” reports Kerkian. “The best examples of Business in Durham, NC, confirms it can include the success of programs such as Box exponentially increase sales, for one partic- Tops for Education and Yoplait Save Lids to ular product as much as 74 percent, result- Save Lives. These have been around for a things we think are most important, such as ing in millions of dollars in potential rev- decade or longer, have extremely high breast cancer and juvenile diabetes.” enue for brands. “The study validates for the awareness among their intended audiences During PFK fund-raising campaigns first time how cause-related marketing can and have proven key for the brands in build- every spring and fall, participating sponsors significantly drive actual consumer choice,” ing loyalty.” make a per-unit donation for each product states Cone’s Kerkian. The study also found 85 percent of con- shipped into participating retailers’ markets. To complement the behavioral study, sumers report they have a more positive “One hundred percent of these donations Cone conducted the 2008 Cause Evolution image of a company or product when the benefit the local Children’s Miracle Network Study to better identify what drove substan- product or company supports a cause the Hospitals and PBS Kids,” says McIntyre. “We tial product sales for the brands in the consumer believes in. The study further chose these causes because we have a pas- Cone/Duke study. The results found con- found 79 percent of consumers reported they sion for helping kids. We’re proud of our ini- sumers consider the following factors to be are likely to change from one brand to anoth- tiatives to both raise funds for hospitalized important when deciding to support a com- er, given similar price and quality, if the kids and educate kids on the benefits of pany’s cause efforts: 84 percent want to other brand is associated with a good cause. healthful eating with more fruits and vegeta- select their own cause, 83 percent say per- The study found 38 percent have bought a bles. To date, Produce for Kids has raised sonal relevance is key, 80 percent believe product or service because it was associated nearly $2 million for these important non- the specific nonprofit associated with the with a cause or issue over the past 12 profit organizations.” campaign matters, 77 percent say practical months, up from 20 percent in 1993. The Oppenheimer Group, Vancouver, incentives for involvement, such as saving The leading issues Americans want com- BC, Canada, has teamed up with the Ameri-

24 PRODUCE BUSINESS • DECEMBER 2008 Fax-Back Made possible by a grant from: Nomination Form CALLING ALL RETAIL AND FOODSERVICE EXECUTIVES

As a result of a special grant provided by Mann Packing Company and Grimmway Farms, funds have been secured to allow four select individuals (two from retail and two from the foodservice operator segment) to receive all inclusive scholarships to attend the 2009 PMA/Cornell/PRODUCE BUSINESS Leadership Symposium in Dallas, TX, January 14-16, 2009.

The goal of the program is to allow gifted participants from retail and foodservice to engage with their peers from other industry sectors and immerse themselves in a program that goes beyond the produce trade to encourage strategic thinking and a broader perspective on business.

If you would like to be nominated or if you would like to nominate someone else, please fill out and fax this form to 561-994-1610 or visit www.producebusiness.com and complete the short form online.

For more information, please contact Ken Whitacre, publisher, at [email protected] or call 561-994-1118, ext 101.

NOMINATION FORM - FOR RETAIL AND FOODSERVICE EXECS ONLY

First Name ______Last Name ______Title ______Company ______Address ______City ______State ______Zip ______Country ______Phone ______Fax ______E-mail ______Please tell us why this candidate should attend the PMA Leadership Symposium______Please list some of this candidate’s business and personal accomplishments you think will qualify him or her for this scholarship ______Please write any extra information on a separate sheet of paper. Fax Back to 561-994-1610 can Diabetes Association (ADA), Alexandria, tomatoes and cucumbers, and Mexican race, spectators meet our team, taste our VA. “Our aim was to spread the word about grapes, bore the campaign logo as well as berries and are exposed to our brand. Addi- appropriate serving sizes and to encourage diabetes-friendly information such as serv- tionally, our team visits retail stores in cities people to feel comfortable with eating fruit ing sizes and recipes. We developed a pam- where they compete and are stopped by in moderation as a daily habit, while also phlet as well as an innovative wheel made consumers in the produce department pro- enjoying a wide range of vegetables in their available to retailers and distributed to peo- viding words of encouragement and support regular diet,” says Karin Gardner, Oppen- ple with diabetes at the ADA Expos.” for our brand since we support the sport.” heimer communications manager. “We Additionally, Oppenheimer staff raised In early 2008, Fresh Express, Salinas, CA, found many people with diabetes had the more than $5,000 toward diabetes preven- built on its continued support of the Dallas, misconception they should not eat fruit tion by cycling (collectively) over 400 miles TX-based American Heart Association’s because of sugar level concerns. However, in ADA Tour de Cure events in Seattle and (AHA) Go Red program by contributing 10¢ the ADA’s Diabetes Food Pyramid suggests Los Angeles. According to Gardner, Oppen- from each specially marked Salad Blends people with diabetes should consume two to heimer fruits and vegetables were sampled and Chiquita Bites during the month of Feb- four servings of fruits and three to five serv- at both cycling events. ruary. Specially designed package art as well ings of vegetables daily.” California Giant Berry Farms, Wat- as themed shelf-talkers, stanchion signs and The campaign, Join us in the Fight Against sonville, CA, has supported a national hi-lo channel enhancers created a callout to Diabetes, uses packaging, point-of-sale mate- cycling team since 2000. “We chose cycling consumers in the produce aisle. rial and retail advertising to engage con- as the perfect fitness activity to support our “As a company, doing ‘good things’ such sumers. Gardner explains, “Packaging of healthful berries simply because it is an as contributing to raising awareness around such products as gold pineapple, Divemex activity every consumer can relate to,” says Breast Cancer through Komen [the Susan G. and OriginO greenhouse-grown peppers, Cindy Jewell, director of marketing. “At a Komen Foundation in Dallas, TX, will be

FairTrade Growing Business for Retailers

n an increasingly competitive economic social premium fund,” says Marion Tabard, tance with consumers and retailers can capi- environment, the FairTrade label offers marketing director. “In 2007, the total Fair talize on it.” I retailers a way to differentiate products Trade premium fund for Uniban farm work- A little education can help consumers and provide perceived value to their cus- ers was $1.8 million. For 2008, it is estimat- see the value of purchasing cause related tomers. “This is an emerging trend in the ed to be $ 2.6 million. The Fair Trade audi- products. Tabard reports, “In the case of Fair produce field,” says Rafael Goldberg, CEO of tors ensure these funds support social and Trade Certified bananas versus conventional Interrupcion FairTrade in Brooklyn, NY, a economic development projects for the bananas, the price difference at retail is only producer and importer of FairTrade blueber- workers, their families and communities.” 6-cents per pound, a fairly small price differ- ries, cherries, apples and pears. “It’s increas- “We’re seeing increasing interest in Fair- ence. For this difference consumers have the ingly important as consumers get more and Trade products,” relates Paul Kneeland, vice opportunity to improve the quality of life of more interested in where products are from president of produce and floral for Kings banana workers and their families in the and who made them.” Super Markets, Parsippany, NJ. Kings han- growing areas. This is a fairly small contribu- “Fair Trade Certified is an excellent cause- dles Fair Trade products in all its depart- tion, especially for bananas which are marketing initiative for many companies ments including produce and floral. “We did already one of the most affordable items in because it empowers farmers to lift them- an ad for Fair Trade as well as a good job of the produce department.” selves from poverty and empowers con- informational demonstrations in the store According to the FairTrade Labeling Orga- sumers to make ethical decisions about the and we’ve seen a great response.” nizations International (FLO), based in Bonn, products they buy,” states Katie Barrow, pub- “Right now we’re at a time when people , consumer awareness of FairTrade lic relations manager at TransFair USA in are interested in their food and where it grows 30 percent each year, and 50 percent Oakland, CA. “Fair Trade has proven to be a comes from,” agrees Mark Mulcahy, produce of those aware of FairTrade purchase Fair- valuable initiative for many companies. Fair director for New Leaf Community Markets, a Trade, compared to just 30 percent purchase Trade Certified products in the United States 6-store chain based in Santa Cruz, CA. intent in organic. FLO further reports Fair- passed $1 billion in 2007, and Fair Trade “Green is a big deal now and people want to Trade Certified imports grow at an average Certified is integral part in the Starbucks be doing the right thing and spending their annual rate of 50 percent and the retail Shared Planet initiative, Whole Food’s Whole dollars where they can feel good about it.” value of FairTrade Certified products is near- Planet program and many more major cor- “In an article published by Produce Busi- ly $1 billion. porate initiatives from companies big and ness [in December 2007], social responsibili- “We focus on the Value Through Values small. These programs have been very well ty is seen by consumers as a major issue [a company slogan portraying the value of received by consumers and the media.” facing the produce industry” explains goodwill] resulting when a retailer makes a Turbana Corporation of Coral Gables, FL, Tabard. “When purchasing produce, con- commitment to this,” relates Goldberg. “It markets Fair Trade bananas. “Fair Trade sumers are more attracted to socially has a new opportunity for merchandising guarantees a fair price and quality-of-life responsible products. FairTrade products def- and communicating a positive story. You’re improvement for the workers through a initely have a growing interest and accep- not marketing on the traditional areas of

26 PRODUCE BUSINESS • DECEMBER 2008 covered in depth in Part 2 in January] and related messages can have a profound know that we are using our marketing dol- heart disease through the American Heart impact on sales.” lars to bring some good into this world while Association’s Go Red are a natural extension “Our customers are socially responsible benefiting from the brand halo in return.” and we know it resonates with our target and they look at these types of things as a consumer,” says Ed Romero, general manag- good thing and something they want to be a HARD TIMES er, business management, Chiquita Brands part of,” relates Paul Kneeland, vice presi- DON’T HARDEN HEARTS , Cincinnati, OH. dent of produce and floral for Kings Super The 2008 Cone Cause Evolution Study also Markets, Parsippany, NJ. revealed consumers continue to have high CUSTOMER REACTION Suppliers report favorable consumer philanthropic expectations for companies Consumers show positive support for response through purchases and feedback. struggling amid the current economic crisis. these efforts. “Well-conceived and -executed “The consumer response to Produce for More than half (52 percent) of Americans cause marketing can be an extremely effec- Kids has been unbelievable,” notes PFK’s feel companies should maintain their level tive strategy with consumers,” says Hes- McIntyre. “In addition to having raised near- of financial support of causes and nonprofit sekiel of the Cause Marketing Forum. “Atti- ly $2 million for our nonprofit partners organizations. Another quarter (26 percent) tudinal research for more than two decades since 2002, millions of consumers have vis- expects companies to give even more. has made it clear — price and quality being ited our Web site and thousands of people “Consumers still expect it,” says Cone’s equal — how the overwhelming majority of have entered our contests each year.” Kerkian. “There is a data point in the consumers would prefer to purchase prod- “Consumers are voting for brands that research showing consumers have the same ucts from companies supporting causes make a charitable contribution with their or higher expectations of companies to give they believe in. The behavioral research by wallets,” says Chiquita’s Romero. “Clearly back during an economic downturn. And Cone and Duke found exposure to cause- it’s good for us, but what a great thing it is to ultimately, when companies offer a way to

quality or price. The retailer is going to see a items in the store. They will be complete between the supplier and retailer. “This is an benefit if it can properly educate its con- with a sign and a description. We’re working opportunity for retailers to have a means by sumers. This ties in well with things super- to educate our employees on FairTrade so which to support growth in the area of pro- markets do as far as being community they’re ready to answer customer questions duction,” reports Goldberg. “The relationship members and focusing on health.” related to this topic.” empowers producers to make better product The FairTrade label may help retailers dif- FairTrade is a certified process, like and provides a consistent supply chain with ferentiate products and provide a perceived organic, with specific social and production lots of checks and balances. It’s very good to value in an era of increasing prices. “A lot of standards guaranteed for producers in know who your partners are and to make retailers ask me if in these tougher econom- developing countries. “These include fair sure they’re healthy enough to do the right ic times, we can retail a produce item selling wages, decent labor standards and treat- thing as opposed to cutting corners and for 10¢ to 20¢ extra,” states Goldberg. “Will ment, and investment in a social premium making mistakes.” their customers pay it? We’re in the business where a percentage of sales is put into a “We work with the FairTrade products to of creating value for our consumers. If you fund,” explains Goldberg. “Producers then ensure growers are compensated,” says can help them see the extra value, they will collectively decide where to spend the Kneeland. “We pay a bit of a premium but pay for it.” money. Many times this is used for health, the money goes back to the growers and “We handle FairTrade because we feel education or scholarship programs. Fair- towns they support. It’s another avenue to it’s the right thing to do,” reports Mulcahy. Trade includes strict requirements for record develop relationships with our suppliers.” “But it also helps in making people feel bet- keeping, water usage, usage and, Retailers are seeing increasing focus on ter about prices going up. The increase in in general, good agricultural practices.” FairTrade in the marketplace. “All our stores price of conventional products has closed “FairTrade guarantees a fair price and are almost 99 percent organic,” reports the gap somewhat with organic and Fair- quality-of-life improvement for the workers Mulcahy. “But we’ll feature FairTrade over Trade pricing. For an extra dime or 20¢, if through a social premium fund,” adds organic when we can get it consistently. they can get a FairTrade product, we see our Tabard. “This premium is invested for the There is conventional grown FairTrade so customers responding.” benefit of the workers, their families and someone who isn’t carrying organic can still “We currently sell four varieties of Fair- their communities. They receive access to carry a FairTrade.” Trade coffee and are looking forward to sell- housing, access to credit, education and “FairTrade is certainly a hot social topic ing FairTrade produce,” reports Dorothy community development. The impact from right now,” according to Kneeland. “Organics Shaver, RD, LD/N, corporate dietitian for FairTrade Certified bananas can be seen in continues to be hot and has a larger base of Kroger Mid-Atlantic based in Roanoke, VA. the total FairTrade premium available for products and sales. As a trend, FairTrade is “Our customers want to support a cause, farm workers, which in 2007 was around growing faster than organics right now but and purchasing FairTrade items is an easy $1.8 million and in 2008 it is estimated to this is a percentage of sales. We still have a way to get the product they want for a good be $2.6 million.” very strong organic customer and I believe cause. We will be advertising the FairTrade FairTrade also helps develop linkage people will buy fair trade and organic.” pb

DECEMBER 2008 • PRODUCE BUSINESS 27 integrate giving back through daily purchas- es, consumers will embrace this opportunity Suggestions For Success as they tighten their own purse strings.” “Even as belts tighten, those people who he 2008 Cause Evolution Study from goes and how they help.” can afford to donate to the causes they Cone, Boston, MA, found 91 percent Paul Kneeland, Kings Supermarkets, Par- believe in, or purchase products associated T of Americans believe companies sippany, NJ: “Information demos are very with them, will continue to do so,” agrees should tell them how they are supporting successful. Our Fair Trade representatives set Oppenheimer’s Gardner. “In hard times, we causes, but only 58 percent of Americans up a table, hand out pamphlets and talk look to family and community and do our believe companies are providing enough with our customers to educate them.” best to take care of them. Contributing to details about their cause efforts. Here is David Hessekiel, Cause Marketing Forum, meaningful causes is part of this.” some practical advice: Rye, NY: “First identify your goals. Do you “Despite the uncertain economy, we Marion Tabard, Turbana Corp., Coral want to attract more shoppers, sell more of must continue to provide healthful food and Gables, FL: ‘It’s very important for retailers, a particular product, or cross-promote with value to today’s consumer,” says California in coordination with their suppliers, to imple- another department in the store? Once you Giant’s Jewell. “We will do our best to main- ment a good merchandising program to have a clear goal, then you can create a tain our strong messaging and let con- educate their shoppers, inform them what proper strategy and a tactical pro- sumers know our products will be on the the program is about, where their money gram to get you there. “ pb shelf every day providing, flavor, quality, safety and value for their dollar.” pb Reader Service #69 Reader Service #25 Reader Service #61 Reader Service #26

28 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 32 Ring In Sales During Chinese New Year This annual celebration offers retailers the opportunity to market and sell produce popular in Asian cuisines.

BY JULIE COOK RAMIREZ

Come January and February, smart retailers opportunity to promote Asian vegetables.” will focus on the oriental New Year, which Dictated by the lunar calendar, Chinese New Americans often refer to as Chinese New Year. Year can fall anytime during a 4-week period. With enough foresight, it’s not difficult for retailers to The traditional start of the lunar new year, plan for the holiday, notes Perez, recommending which is celebrated throughout the various retailers promote it ahead of time so non-Asian con- of Asia, fosters spending time with family and sumers will know when the new year will occur. friends — and feasting on traditional foods. In 2009, Chinese New Year, which begins the New Year’s feasts are heavily dependent on pro- Year of the Ox, falls on Jan. 26, but previous Chi- duce because of its symbolic meaning. For exam- nese New Years have fallen as late as mid-February. ple, Buddha’s hand (citron) represents good luck That can pose a challenge for retailers because of and good fortune while gai lan (Chinese broccoli) the holiday’s proximity to Valentine’s Day and signifies youth and wealth. Other produce in heavy Super Bowl Sunday. “The fact that Chinese New demand for Chinese New Year includes kumquats, Year is positioned between two of the biggest retail longan, bok choy, Chinese napa cabbage, ginger promotional opportunities does cause challenges,” root, snow peas, sugar-snap peas, bean sprouts and notes Maria Brous, director of media and communi- Korean pears. Non-produce items, such as won ton ty relations, Publix Super Markets, Inc., a Lakeland, and egg roll wrappers and fortune cookies, are also FL-based chain with 941 stores. “Many times, dis- merchandised in the produce department. play space and promotions are already spoken for “The Asian community eats a lot of fresh vegeta- when big events are approaching.” bles and incorporates them into just about every- To help retailers draw attention to Asian pro- thing they cook,” explains Jesse Perez, sales manag- duce, Melissa’s/World Variety Produce, Inc., Ver- er, Pismo-Oceano Vegetable Exchange (POVE), non, CA, provides a Chinese New Year kit with Oceano, CA. “Chinese New Year is a tremendous shelf strips, danglers and recipe tear pads. The goal is to boost sales of Asian produce around Chinese New Year and to leverage the holiday as a spring- board to increase usage of Asian produce year- round, particularly among non-core or non-Asian consumers. “We use the holiday to help retailers get an idea of how Asian produce will fare in their pro- duce department by really promoting it during the weeks leading up to Chinese New Year and then thereafter to see the potential of extending the vari- ety of Asian offerings in their store,” reports Robert Schueller, director of .

WANING WON TONS While Schueller remains enthusiastic about Chi- nese New Year, many suppliers and retailers report that interest in the holiday seems to be waning. Mike Carter, senior category manager, Winn- Dixie Stores, Inc., the 521-store chain based in Jack- Photo courtesy of Frieda’s

30 PRODUCE BUSINESS • DECEMBER 2008 sonville, FL, blames the decline on retailers’ increased efforts to gear up for Super Bowl Sunday, leaving less space and ad dollars for Tofu Trends Chinese New Year promotions. According to Susan Bucher, director of sales, Morinaga Nutritional Foods, Inc., Tor- ong associated with Asian cuisine, FL, uses in-store sampling and educational rance, CA, consumers began losing interest tofu has successfully crossed into the demos to educate consumers on how to in Chinese New Year about four years ago. L mainstream. Usually consisting of properly use tofu. Andy Wilson, sales manager, Ben-Bud nothing more than soybean curd and Fresh tofu is usually sold in the produce Growers, Inc., Boca Raton, FL, also feels water, tofu acts like a sponge, absorbing the department, positioning Yap prefers. interest is waning, “It baffles me because flavors of surrounding ingredients. Unfortu- Tofu is available in soft, firm and extra that segment of the population is increas- nately, some of the uninitiated mistakenly firm at Jacksonville, FL-based Winn-Dixie ing. The only thing I can think of is maybe try tofu right out of the package — an expe- Stores, Inc. Mike Carter, senior category Chinese-born consumers become more rience that can turn them off for life. manager, who says tofu sales have more mainstream the longer they are here.” “For most Americans, when you say than doubled over the past year, Interest remains strong for the clientele the word tofu, a disgusted look comes store remodeling with some of that of Joe Tam, Chinese-born co-owner of across their face because tofu is not a increase. Overall, he notes, tofu interest is Farmer Joe’s Marketplace, an Oakland, CA- product you eat straight out of the pack- on the rise. The firm variety remains the based chain with two stores, although he age,” notes Robert Schueller, director of top seller, although Carter reports strong concedes that younger, American-born public relations, Melissa’s/World Variety sales of tofu with incorporated vegetables. Asians don’t care nearly as much about the Produce, Inc., Los Angels, CA. “It’s some- New varieties of tofu are the focus of holiday as earlier generations do. thing you have to incorporate into meals.” efforts for Leasa, where veggie tofu, Each year, Tam coordinates an elaborate Andrew Yap, president, Leasa Indus- cilantro tofu and spicy tofu have all proven Chinese New Year celebration in his stores tries, Inc., Miami, FL, says American con- popular. The company plans to roll out complete with a dancing dragon, gongs and sumers often assume they’re eating chick- Hispanic-flavored tofus in an effort to drums. He bolsters his selection of Chinese en when tofu is prepared properly — a fre- the gap between Asian and Latin vegetables just prior to the holiday to pro- quent comment heard at in-store demos. foods. “That’s the way trends are moving,” vide his consumers with convenience so Publix Super Markets, Inc., Lakeland, Yap adds. pb “They don’t have to go to Chinatown.” Tam’s non-Asian consumers enjoy the spectacle as well and often take a few Asian head of lettuce or some Romaine?” WA-based chain with six stores, does little to vegetables home as a result of the celebra- promote the holiday. “I might have an item tion. He credits the San Francisco Bay Area AMERICAN APATHY in my ad, but we don’t really do too much Chinese restaurants with boosting interest While retailers with a large Asian clien- with Chinese New Year. We don’t advertise it in Asian food, which consumers then want tele go out of their way to promote Chinese to any degree. I don’t promote it in-store to to try and replicate at home. New Year, many mainstream retailers do any degree. We really don’t play it up at all.” Retailers have an opportunity to promote very little — if anything — to commemorate Likewise, PCC Natural Markets, a Seattle, Asian produce using Chinese New Year as a the holiday. Winn-Dixie’s Carter says Chi- WA-based chain with nine stores, doesn’t do springboard, states Karen Caplan, president nese New Year is “not a big deal in our oper- anything to draw attention to Chinese New and CEO, Frieda’s, Inc., Los Alamitos, CA. ating areas,” although he sees the holiday as Year. “There just isn’t any energy or effort, “During the past 10 years, there’s been a providing an opportunity “to promote some commitment or alignment of any product huge boost in the awareness of Chinese of the better items we would otherwise have for that holiday,” notes Joe Hardiman, pro- cooking. Today, people don’t think it’s odd to a hard time selling.” This coming Chinese duce merchandiser. stir-fry vegetables or serve won tons for hors New Year, he intends to dedicate more ad While it’s always wise to make merchan- d’oeuvres in the middle of America in Janu- space to the holiday and boost usage of POS dising decisions based on demographics, it’s ary or February. This is a great opportunity.” materials and recipes “if it makes sense.” important to make sure events such as Chi- George Kazantzis, produce buyer, Publix does not increase its selection of nese New Year are recognized, even in Nature’s Best Fruit Market, a single-store Asian produce for the Chinese New Year, stores with very few Asian consumers, says operation in Westmont, IL, seizes that notes Brous. However, the chain engages in Frieda’s Caplan. “If retailers have a largely opportunity by bringing in a number of a limited amount of promotional activity, Asian demographic, they can really blow it Asian produce items, mainly root vegeta- including signage, POP and recipe cards as out and have a huge variety. Even if they bles, that he doesn’t ordinarily stock at other well as additional savings on Asian produce don’t have a big Asian clientele, they should times of the year. Happy Chinese New Year during the weeks leading up to the holiday. still offer the basics such as ginger root, signs welcome his large number of Asian Larry Damico, owner, Hyde Park Pro- snow peas, sugar snap peas, napa and bok consumers to the department and a handful duce, a single-store supermarket in Chicago, choy. Those are the lowest-risk items.” of strong-selling Asian items are on promo- IL, reports, “I don’t do much for it.” Successful Chinese New Year promotions tion that week. This sentiment is echoed by Vince Mas- take an integrated, store-wide approach, Many retailers that don’t have a large tromauro, produce/floral director, Sunset notes Melissa’s Schueller. “It has to be a Asian clientele view Chinese New Year as a Foods, a 4-store chain based in Highland store-wide initiative in offering a full line of novelty, according to POVE’s Perez. He feels Park, IL. “It’s not a big deal for us,” he says. Asian products. Whether it’s a green the holiday can also be used to boost sales Even in Seattle, which boasts a large selection in the beverage aisle or noodles or of non-Asian produce. “While you’re there Asian population, Ed Laster, produce spe- rice or fish, it has to be implemented picking up some Napa, how about a regular cialist for Metropolitan Market, a Seattle, throughout the entire store concept.” pb

DECEMBER 2008 • PRODUCE BUSINESS 31 Pump Up Your Super Bowl Promotions Score a sales touchdown with winning marketing and merchandising tactics.

BY PETER LAVERY

Super Bowl Sunday drives sales in the wake pressures of the economy weighing so heavily on of the holiday season and provides opportu- the minds of consumers, it’s a nice relief some- nities for produce departments to stage times to just relax and enjoy. Retailers can benefit storewide cross-merchandising efforts. from this by bringing to light those products that help consumers get satisfaction from something as Produce managers and suppliers work together simple as a Super Bowl party. Call attention to to incorporate fresh produce items with prepared those items that help support these types of special foods, value-added products and direct and indirect events and opportunities that encourage people to tie-ins. They cross-merchandise produce with chips enjoy time with friends and family.” and other snack foods, pizza fixings, , wine, Shane Towne, marketing and new business grilling hardware and supplies, meats, dairy and development coordinator, Indianapolis Fruit Co., deli products. The culmination of football season is Inc., Indianapolis, IN, says retailers can begin set- rich in merchandising opportunities so it’s critical ting the stage months ahead of Super Bowl Sunday, that retailers take full advan- which will be Feb. 1, 2009, in Tampa, FL. “We try to tage of this profitable event. promote products from the beginning of the foot- “Super Bowl is all about ball season leading up to the Super Bowl and the the celebration,” exclaims playoffs. We give clients our quarterly merchandis- Candace Blackmoore, direc- ing planner that breaks down each week in a quar- tor of marketing, Apio, ter, and we pick certain weeks for our clients to Guadalupe, CA. “With all the focus on merchandising aimed at football events.” “Our party trays have always been a popular

Photo courtesy of California Avocado Commission addition for Super Bowl Sunday,” adds Blackmoore. “We offer a variety of tray sizes and product config- urations including a vegetable tray with dip, a turkey, cheese and vegetable tray with dip as well as a beef, cheese and vegetable tray. All are suitable for any get-together. We have also expanded our tray products to include an organic tray, and a petite cheese and vegetable tray.” Califresh, Inc., a Sanger, CA-based supplier of fresh garbanzo beans, also known as chickpeas, fol- lows a playbook similar to Indianapolis Fruit’s. Cal- ifresh’s fire-roasted garbanzo beans, whose taste is described as a roasted artichoke with asparagus fla- vor, sell well among “people looking for a healthful snack,” reports Morgan Murray, managing member. “It certainly beats edamame.” In early September, Califresh launched a tailgat- ing marketing campaign at nearby Fresno State Uni- versity football games. Company representatives set up a 10-by-10 booth featuring banners of the stores that carry its product. Califresh found great success

Photo courtesy of Indianapolis Fruit Co., Inc. giving away samples and selling 4-ounce bags at the

32 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 6 pre-game parking-lot parties. she asks. “Set it with items from around the to involve other departments, including Mann Packing, Co., Salinas, CA, launched store that would be important to include in beer and wine, snacks and chips and refrig- a seasonal product line made up of savory, any football party. Use end caps to continue erated items from the deli department. “We fresh-cut vegetable platters perfect for a vari- the theme or set POS that supports promo- built a much bigger display over the years, ety of special occasions, including football tions and ads featuring Super Bowl Sunday but it all started with produce,” he explains. season. One-Stop Platter Shop offers a turn- fare. The key is to get the shopper's atten- Econo Foods, an Iron Mountain, MI- key program designed to grow sales and cre- tion and get them thinking, ‘Yeah, I need based chain with 25 stores, makes football- ate incremental peak holiday sales with veg- that for Sunday.’” themed displays front and center during the etables and vegetable-centric party trays in During the football season, Indianapolis weeks leading up to Super Bowl Sunday. the produce department, explains Lorri Fruit works with retailers to help them “Bulk peanuts, avocados, vegetable dips and Koster, vice president of marketing. establish eye-catching displays with targeted veggie trays are big for the game,” states The Tailgater trays come in two varieties: products. “We do that by suggesting they Josh Racine, produce manager. “We have a vegetables with traditional ranch dip, beef build displays not only with out pre-cut lot of veggie trays moved up to the front dis- bites and cheddar cheese cubes, and vegeta- trays but also by cross-merchandising [our play table — they’re usually in the back of bles with traditional ranch dip, turkey bits products] with big, beautiful waterfall dis- produce — and the bulk peanuts are out in and mozzarella cubes. “We jokingly refer to plays — all the way down to T. Marzetti [Co., apple or potato bins. Some things [typically this [product] as the guy’s platter because of Columbus, OH] dips and dressings,” explains sold during] summer are big, too, such as the more indulgent ingredients. We went Towne. Indianapolis Fruit incorporates foot- fruit and veggie kebabs. Even though it’s not with this name because most Americans — ball-themed packaging and displays. “We use summer, it’s still a football weekend.” even if they’re not sports fans — can relate team flags and other materials. With an area to tailgating. We want to create new usage consisting of 14 states, we find some big CREATIVE PROMOTIONS occasions in the minds of consumers. It rivalries and big events during the season.” Many suppliers work with retailers to could be your church potluck or an office Towne stresses the Super Bowl is the develop POS materials that will help boost party, but the concept of portability and game to watch and retailers should plan sales in the produce department. “For retail- entertaining is synonymous with tailgating.” accordingly. “When the Super Bowl comes ers, it’s eye-catching merchandising materi- out, we suggest they build separate, large als that count — footballs and flags, grills and HIGH-IMPACT DISPLAYS stand-alone displays, including pre-made produce — but it’s also a build-up of conve- “Establish a destination in store that fea- [displays] with cross-merchandising between nience for the consumer,” adds Towne. tures all the ingredients and elements need- produce, beer with lemons, limes and snack “Don’t forget the charcoal and the skewers. ed to throw a successful party. From pro- foods with dips.” To do shish kebab, we supply just-add-meat duce and paper products, chips and sodas to José Manzano, produce director, Dorothy kits for the retailers. This season and the big dip and dressing, having a one-stop-shop Lane Market, a Dayton, OH-based chain game are the perfect opportunity to start makes it easy for shoppers to easily get what with three stores, notes, “Super Bowl promo- with produce and build from there.” they need, and it encourages impulse buys,” tions have evolved over the years for us. We “In addition to ads, it is also an ideal time shares Apio’s Blackmoore. used to do a Super Bowl display using just to display trays near the front of the pro- “Why not set up a football display at the produce items in the lobbies of our stores, duce section and call attention to them to front of the store, complete with goal posts, focusing on avocados for guacamole” — a stimulate incremental sales, suggests Black- Astroturf and merchandise from the teams?” popular Super Bowl snack. The display grew moore. “Apio works with each customer as needed to maximize tray sales during this time of year.” Communication And Tailgating giveaways are gaining in popu- larity. It’s a big concept in terms of drum- Planning Are Key ming up excitement around the big game. “We also do deli meat and cheese tray give- ood communication plays an impor- Dorothy Lane generates all its promo- aways for Sunday football games,” explains tant role in a successful merchandis- tional materials internally and offers recipe Econo Foods’ Racine. G ing program. Shane Towne, market- cards as part of its POS materials, including ing and new business development coordi- one from Manzano. “That is my own person- SUPER BOWL BASICS nator, Indianapolis Fruit Co., Inc., Indianapo- al recipe. I am originally from Mexico so my Retailers are getting creative in the types lis, IN, says if a consumer has never used a recipe does not contain powders or pack- of produce items they’re including in their habanero pepper or fresh cilantro before aged mixes.” Super Bowl displays and promotions. “In and the produce department employee can Califresh, Inc., Sanger, CA, supports prod- these big displays, you’ll have all the ingre- pick up on the excitement generated by a uct introductions with recipes and POS dients for salsa — tomatoes, cilantro, onions, display, that employee can explain items materials. “For stores that want to carry our peppers, garlic — and for guacamole, too,” when asked and consumers are more likely product, we will work with them to build a states Towne. “We go to the [California] Avo- to give the unfamiliar a shot. marketing program based on their needs,” cado Commission [(CAC), Irvine, CA] for José Manzano, produce director, Dorothy says Morgan Murray, managing member. POP materials and other assistance.” Lane Market, Dayton, OH, focuses on salsa He notes Califresh is already working with According to Jan DeLyser, CAC vice pres- and guacamole. “We have different kinds of Publix Super Markets, Inc., a Lakeland, FL- ident of marketing, the Super Bowl and pre-made salsas, as well as the ingredients based chain with multiple stores in Tampa, Cinco de Mayo are the two biggest days in — tomatoes, avocados, onions, cilantro, gar- FL, where the upcoming Super Bowl is set to the calendar year for avocado sales. “It has lic — to make them yourself,” he explains. take place. pb taken years to get here, but people associate avocados with the Super Bowl,” she notes.

34 PRODUCE BUSINESS • DECEMBER 2008 Some of the major considerations in the continuing evolution of avocados into the American mainstream are the consistency of year-round supply presently available to American supermarkets and the ability of retailers to help consumers incorporate avo- cados into their menus. “As a result, people are taking traditional American holidays and using or introducing avocados into them,” DeLyser adds. While CAC is a separate entity from the Hass Avocado Board (HAB), Irvine, CA, the two organizations “work closely together on cross-promotions, which are huge during Super Bowl season,” says DeLyser. Super Bowl promotional efforts include commercials associating the Super Bowl with avocados and featuring former Nation- al Football League (NFL) players and tying tailgating activities to avocados. CAC provides merchandising materials, such as POS materials, coupons and dis- plays that reflect the getting-together aspects of the Super Bowl to help retailers get the word out about avocados and their many uses. This is particularly true during the weeks leading up to the Super Bowl itself. While many retailers focus on the Super Bowl after the holiday season wraps up Jan. 1 and include Super Bowl planning in their annual game plan, they really ramp up the energy on the game when con- sumers are primarily focused on the event, according to DeLyser. Econo Foods focuses much of its retail merchandising on seasonality, but avocados are big for the Super Bowl in its stores, according to Racine. “We feature avocados in our weekly ads at least three times between Christmas and Super Bowl Sunday.”

INCORPORATING VARIETY Retailers shouldn’t focus just on Super Bowl favorites when building their displays. Towne notes “Specialty items come into play with our cross-merchandising pro- grams. Garlic, jalapeño peppers, habanero peppers, specialty tomatoes and fresh herbs, such as cilantro are all big sellers. Incorpo- rating these items into waterfall displays gets people excited about the produce and relates that excitement to the event.” Econo Foods has developed a major end- cap display that brings several other depart- ments into the produce department to drum up enthusiasm and awareness. “We definite- ly focus on cross-merchandising with the 4 3

meat department [for shish kebabs] and for a # display focused on pizza. We feature mush- rooms, onions and peppers, and we bring in jars of different sauces and cheeses from dairy, pizza crusts and meats from deli, and

beer and wine,” explains Racine. pb Reader Serv i ce

DECEMBER 2008 • PRODUCE BUSINESS 35 Packaging With IMPACT Six companies claim PMA’s prized Impact Awards for Packaging.

BY OSCAR KATOV

What’s the bottom-line definition of effective produce packaging? Packaging that positively affects store sales, of course. Ideas supporting that merchandising objective received top recognition at the Newark, DE-based Produce Marketing Association’s (PMA) Fresh Summit in Orlando, Oct. 25, with the announcement of winners in its second annual Impact Awards for Packaging competition. Chosen from 121 entries in six categories were: Del Monte Fresh Produce (food safety/traceability); Mann Packing Co., Inc. (supply chain efficiencies), Mickey’s Minis (marketing design); Noble (environment/sustainability), Tanimura & Antle, Inc. (mar- keting management/content); and To-Jo Mushrooms, Inc. (functionality/technology).

BEST IN FOOD SAFETY/TRACEABILITY Del Monte Fresh Produce, Coral Gables, FL Product: Safe-T-Fresh Packaging “Our new Safe-T-Fresh Packaging is designed to meet the needs of both our retail- ers and their consumers,” explains Dionysios Christou, vice president marketing. “With the built-in tamper-proof feature, we can ensure delivery of the freshest quality product and reassure consumers in an era when food safety is top of mind. “Our ability to offer a variety of packaging options, depending on a retailer’s pref- erence and/or store layout, is a good competitive advantage. The tamper-proof attribute ensures absolutely no leakage, helping to maintain its fresh quality and appearance — with both retailers and consumers confident they are receiving the freshest and safest products. “Elimination of the standard shrink band also offers many merchandising benefits. The design is much cleaner and fresher looking and allows customers to see the fruits or vegetables clearly. Additionally, the built-in tamper-proof feature allows for extend- ed shelf life, a feature that benefits both retailers and consumers. Finally, with standard fresh-cut containers, the possibility that the safety feature will fall off or break is more prevalent, resulting in retailers being forced to discard the product. Safety-T-Fresh Packaging, from Inline Plastics Corp., [Shelton, CT] contributes to good environmental practices — eliminating the shrink band means less packaging, with less energy con- sumed in manufacturing the product. This packaging is offered nationwide in our fresh-cut produce line, appealing to health-conscious consumers.”

BEST IN SUPPLY CHAIN EFFICIENCIES Mann Packing Company, Salinas, CA Product: Simply Singles Lettuce Leaves “The package is a 6-ounce clamshell containing single leaves of cut, washed, ready- to-eat leaf lettuce,” says Lorri Koster, vice president marketing. “A ‘next generation’ tamper-evident strip [supplied by Inline Plastics Corp., Shelton, CT] replaces the tradi-

Oscar Katov is a marketing communications consultant, serving the packaging and supermarket industries.

36 PRODUCE BUSINESS • DECEMBER 2008 tional wrap-around BEST IN ENVIRONMENT/ ment. The bottle plastic sleeves. This SUSTAINABILITY and sleeve can be innovative package Noble, Winter Haven, FL completely com- creates efficiencies Product: Plant-Based Packaging posted in less than for the entire supply “Noble pure juice is the first retail brand to 100 days when chain including use a bottle and shrink sleeve made from placed in an indus- transportation, han- plant-based packaging — PLA — offering an trial composting Lorri Koster Allison Lee Mann Packing dling, storage and environmentally friendly packaging option for facility. In compari- Noble Juice merchandising — today’s consumers,” reports Allison Lee, direc- son, petroleum- preventing shrink due to physical and climatic tor of marketing based plastic bottles never achieve 100 per- effects. “This packaging material is in keeping with cent , burden the waste system, emit “By shipping 100 percent usable, edible Noble’s profile — all-natural, super premium harmful gasses if incinerated and require far leafy greens, the items create efficiencies in juices, packaged in all-natural material that is more energy to manufacture and recycle. transportation — accommodating 80 cases good for both the consumer and the environ- “A key demographic for the packaging is per pallet versus 48 cartons of shipped bulk leafy greens. “At store level, this package requires less labor overall, needs no misting, lowers main- tenance and minimizes training costs, while wax-free cartons eliminate disposal costs. This is the only package of its kind on the market with a tamper-evident strip that assures con- sumers of product safety. “Simply Singles also have item-level trace- ability and more accuracy at checkout due to bar-coding. We have been shipping whole leaf/singles to the foodservice industry for years with much success. Consumers are looking for the same benefits — time-saving, cost-saving items.”

BEST IN MARKETING DESIGN Micky’s Minis, Millstadt, IL Product: All Dressed Up Mini Package According to William Byland, vice presi- dent, “The All Dressed Up giftable mini set is a complete gift pre- sentation. It’s not just another pretty pot. It combines eye-catching graphics with a function package that not only pro- Bill Byland tects the plant but Micky’s Minis also enhances the presentation. Plus, the top lid and the bottom base can make a reusable keepsake gift box. “The All Dressed Up minis will not get lost in a store’s floral department. The added pro- tection to the plant will last from the grower to the consumer. We’re trying to transform product weakness into product strength by enhancing the visibility of the plants — giving the product more needed protection during shipping and its merchandising in the store.

“We offer this product in three different 9

patterns with two different colors,” he contin- #3 ues. “Each case comes with a different, attrac- tive watering container to make caring for the plants easier at the retail level.” Reader Serv i ce

DECEMBER 2008 • PRODUCE BUSINESS 37 the consumer who wants to make a difference new hydroponic lettuce line. Consumers are container shape in our environment. By offering the consumer increasingly knowledgeable about the envi- with high-impact environmentally friendly packaging options, ronmental impact of the produce they pur- graphics, which are Noble empowers consumers to make changes chase, and by maintaining two separate ele- applied on the lid with their purchasing power.” ments [clamshell and sleeve], we have and four sides, pro- achieved a completely recyclable package viding compelling that allows for a complete informative market- product information BEST IN MARKETING Paul Frederic MANAGEMENT/CONTENT ing message. and serving sugges- To-Jo Fresh Mushrooms, Inc. Tanimura & Antle, Salinas, CA “The future for this package will continue tions. The container Product: Living Lettuce Hydroponic to be an excellent response from consumers, incorporates a tamper-evident security system, Clamshell as it continues to meet demand for year-round and it is liquid-tight, resealable, reusable and “This product allows a consumer to put a locally grown lettuce.” dishwasher safe. The container also is greenhouse in the refrigerator,” proclaims Rick microwavable, allowing the consumer to heat Antle, CEO. “It meets the demand for locally BEST IN FUNCTIONALITY/ a gourmet meal in minutes. grown, sustainable lettuce — grown indoors TECHNOLOGY “The liquid-tight seal and product process hydroponically and available year-round. To-Jo Fresh Mushrooms, Inc., Avondale, PA provides a 30-day shelf life, eliminating Packaging is a clamshell with a removable Product: On-The-Spot Gourmet spoilage and limited shelf life usually associ- sleeve utilizing high-graphic content and an Paul Frederic, senior vice president, ated with fresh mushrooms,” according to eye-catching grab-tab that communicates describes his winning product this way: “On- Frederic. “The packaging eliminates the product attributes and benefits to the con- The-Spot Gourmet offers consumers fresh, preparation and shelf-life limitations normal- sumer. Preparation tips and recipes are on the ready-to-serve mushroom preparations in four ly associated with fresh mushrooms. On-The- inside of the sleeve. delicious flavors — Caramelized Skillet Mush- Spot Gourmet products overcome these “The contour of the clamshell and its rigid- rooms, Marinated Button Mushrooms, Kettle issues and reinforce the inherent strength of ity not only provide protection and a reservoir Cooked Portabella and Garlic Mushroom mushrooms — taste and versatility — in a for the living product but also allow the con- Sauté. The container used for the products convenient microwavable package. The sumer to view the product completely prior to offers a superior combination of form, function product is aligned with current broad con- purchase,” he continues. and economy while meeting appropriate and sumer trends — health and wellness, conve- “The design and development of this pack- reasonable sustainability benefits. nience, environmental responsibility and the aging was done to launch Tanimura & Antle’s “Most evident is the attractive space-saver global palate.” pb 78 57 # # Reader Serv i ce Reader Serv i ce

38 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 33 Mexican Produce Industry Remains Optimistic The Mexican industry continues to press forward and work toward future innovations despite its many challenges.

BY JODEAN ROBBINS

On the heels of this summer’s food-safety alle- Farms, a Carson, CA-based chain with 16 stores. “In gations, the Mexican produce industry is forg- early fall, we’re often looking at Mexico versus Chile, ing ahead with expansion and changes to and we make the decision based on who can deliver its position as a leading fresh supplier. the best quality. Mexico has a huge growing region and you often don’t have another feasible option.” “Mexican produce exports globally are currently In Eastern Canada, where greenhouse produc- valued at more than $15 billion and growing rapidly tion and European product is highly competitive, with the government forecasting growth to a total retailers have niches for Mexican product. “We value of approximately $17 billion in 2009,” says mainly handle mangos, which usually start in late Veronica Kraushaar, president, Viva Marketing Strate- March and end in September,” reports Dwayne But- gies, Nogales, AZ. “U.S. produce imports from Mexico tler, director of produce operations, Pete’s Froo- are valued at around $8 to $9 billion. Mexican pro- tique, a Bedford, Nova Scotia-based chain with two duce is a key factor not only in the United States but stores as well as a foodservice-distribution business. also all over the world, with the country soon making “We also see some peppers during the winter sea- the Top 10 global produce exporters list.” son. Since the local Canadian season has expanded, “If you’re trying to ship to the United States, you’re we’re seeing Mexican product for a shorter period increasingly drawn to Mexico,” adds John McClung, of time now. The principal Mexican hothouse items president and CEO, Texas Produce Association (TPA), we see are cucumbers and tomatoes.” Mission, TX. “Extending the season to provide more to buyers throughout the year is a big motivator. Buy- EVOLUTION OF A GIANT ers are looking for year-round sourcing. Over half of While Mexico has served as a strong player in the what Texas sells comes from Mexico.” North American produce game for quite a while, the Retailers increasingly count on Mexican produce industry is seeing some significant changes. “The to fill gaps. “The Mexican deal is important to our Mexican industry is definitely evolving,” explains program,” says Paul Kneeland, vice president of Jaime Tamayo, director of marketing, Divemex, produce and floral for Kings Super Markets, Inc., a Guadalajara, Jalisco, Mexico. “We are a member of Parsippany, NJ-based chain with 27 stores. “Cus- the Produce Marketing Association’s [PMA, Newark, tomers are demanding year-round product, and we DE] Mexico Country Council, which met [in] Decem- have to do our best to ber [2007] to discuss trends in Mexico’s fruit and veg- get it. Much of the etable industry and the challenges we face in the quality from the Mexi- short and long term. Food-safety and cold-chain opti- can growers is very mization were identified as areas to focus on. The good. It’s definitely a industry is also becoming more market-driven in our big part of our overall decisions and returning to more basic commodities sales, especially in the this year due to the weak U.S. economy.” off-season.” Two of the most noted changes in the Mexican “We utilize Mexican industry is the expansion and diversification of grow- fruits and vegetables ers. “The market is forcing Mexican growers to whenever we need to,” expand and diversify to survive in and be an attrac- states Raul Gallegos, tive option for commercial chains,” according to senior director of pro- Rene Castaneda of Sinaloa, Mexico-based Label Pack duce and floral, Bristol SA De Cv, which specializes in the manufacture and

40 PRODUCE BUSINESS • DECEMBER 2008 What Really Matters…

• Your customer’s satisfaction? • Reduction in shrink? • Reliability? • Knowing who has grown your product? • A true commitment to food safety? check for yourself... www.primuslabs.com/psr/platino.aspx

Reader Service # 1 sale of packaging materials and equipment. reassure consumers about the quality and ty and service than the United States,” adds “We’re seeing more greenhouses or shade safety of these products.” Viva’s Kraushaar. houses as well as growers looking to buy According to Cathey, “Out of 14 food ill- Government and private industry moni- products from other areas of Mexico in order ness outbreaks in past years, Mexico was tor quality and food-safety standards. Jon to provide full-year contracts. Exporters are possibly linked but not confirmed to two of Christopher Myers, business development moving to diversify their product line.” them. The rest were domestic U.S. produc- director, Eurofresh Farms, Willcox, AZ, Jim Cathey, general manager/sales man- tion. Mexican product is just as safe, if not notes two specific government programs in ager, Del Campo Supreme, Inc., Nogales, safer, than domestic product.” place to assure quality. “They are run by the AZ, sees a great deal of growth in the green- “The Mexican industry needs to improve Mexican Department of Agriculture. One is house category. “Field tomatoes are holding its publicity to the U.S. public regarding the México Calidad Suprema or Mexico or shrinking. People continue to gravitate quality of its products and especially about Supreme Quality, which is a certification of toward the Mexican greenhouse and vine- the quality inspection programs in place,” quality at the packing house level. It is very ripe deal as opposed to sourcing out of suggests Kneeland. “We need to work togeth- strict and well recognized abroad among the Europe or Florida.” er and get out there and reassure people. entire produce industry. The second pro- Organic production is another evolving Unfortunately, once allegations are made, gram is Servicio Nacional de Sanidad, area. Danny Mandel, president, SunFed, Rio they stay in the public’s mind.” Inocuidad y Calidad Agroalimentaria [SENA- Rico, AZ, reports, “Organics have been the The Mexican industry presents a strong SICA], which is the Mexican Department of winter vegetable deal’s lover — the one you defense of its long-standing commitment to Agriculture’s unit certifying good agricultur- can’t live with and the one you can’t live al practices [GAP] and good manufacturing without. A highly fragmented production practices [GMP] according to a well estab- base with many smaller growers is involved. lished protocol recognized by the U.S. Food Many organic growers are small and struggle and Drug Administration.” to meet required standards of food safety. “The Mexican industry “For every U.S. agency, there is a coun- Most don’t have the scale to invest in extend- terpart in Mexico doing the same thing,” ed shelf-life . Thus, the organic needs to improve its explains Cathey. “Mexico’s laws are equal to offerings often show various degrees of age.” publicity to the U.S. laws governing U.S. product. FDA found out “Organics from Mexico are growing,” how extensive and sharp the Mexican gov- adds Cathey. “Del Campo’s organic program public regarding the ernment is when it partnered with them consists of beef tomatoes, cucumbers and during this past summer’s problem.” red and green bell peppers. This year, it will quality of its products The Mexico Calidad Suprema program is be hard to say how much it will or won’t and especially about a between the Mexican Govern- grow due to the economy affecting buying ment and various private, international audit- decisions. Consumers may make short-term the quality inspection ing and banking agencies. “It’s a certification decisions to go more conventional.” programs in place.” program for Mexican exporters that meet all SunFed is making strides to significantly GAP requirements and cover all aspects of improve organic quality and hopes to be the quality and food safety. Approximately 100 largest grower of organic green beans in — Paul Kneeland companies and agencies participate current- North America this year. “The research and Kings Super Markets, Inc. ly,” explains Kraushaar. “Growers who suc- development was done to insure our beans cessfully complete the stringent certification will hold up extraordinarily well utilizing our process are entitled to use the Mexico chain of post-harvest technologies providing quality and food safety. “Mexican produc- Supreme Quality [MSQ] Seal of Excellence on extraordinary freshness with extended shelf tion has been subject to protectionist pres- their packages. This gives retailers assurance life,” reports Mandel. “The same is true of sures — some under the guise of food-safety of top quality. The program is growing our organic grape tomatoes — a really great- issues — for decades,” says SunFed’s Man- because consumers are now demanding tasting product. But unlike [in] a small pro- del. “Mexico has had no choice but to get — quality and safety assurance and thus more ducer, these products will be packed in a and stay — serious regarding food-safety growers are undergoing the certification. This Primus- and HACCP-certified facility. Sun- practices. Today, Mexico sports world-class is the all-encompassing Mexican export safe- Fed has enjoyed great success with our line companies leading the way in this area. Fur- ty program for all perishables.” of Perfect Squash. This year, we will offer thermore, produce from Mexico is sampled Third-party audits and certifications are our long-shelf-life zucchini grown organical- by the U.S. Food and Drug Administration increasingly used, especially by larger grow- ly and packed in Xtend modified-atmos- [FDA] at a rate nine times higher than U.S.- ers. “The better growers in Mexico employ a phere bags. Imagine grown organically and grown produce, and the FDA has quintupled third-party auditing company to monitor long shelf life in the same sentence.” its number of physical examinations of their food-safety practices and certify their imported produce since 2001. Mexican com- products,” reports Jerry Havel, director of QUALITY/SAFETY panies participate in third-party certification sales and marketing, Fresh Farms, Nogales, REASSURANCE of their food-safety practices at a rate higher AZ. “For example, Primus Labs is widely In light of this past summer’s food-safety than their domestic counterparts. All grow- used by many growers.” fiasco, Mexico’s biggest challenge has been ers for SunFed have to meet rigid standards to re-assure retailers and consumers of its of food safety throughout their operation. EXPORTER AND quality and food-safety standards. “The Third-party audits document the process.” RETAILER RESPONSE biggest headache is with respect to the lin- “Many Americans don’t realize Mexico Mexican growers understand the impor- gering concern about food-safety issues and exports successfully to countries such as tance of food-safety assurance. “Growers Mexico,” says Kings’ Kneeland. “We need to with much stricter standards of quali- know they are under a very powerful micro-

42 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 21 scope by the U.S. government and most good growers have an extensive food safety- Top 10 Produce Items Imported From Mexico To protocol in place to insure the safety of their The United States, January — December 2007 products,” states Fresh Farms’ Havel. “Farm- ing practices in Mexico are at a very high COMMODITY 10,000-LB VALUES IN level. The fields, product, machinery and UNITS* $1,000** farming practices are all very modern and clean. Mexican farmers are no different 1 TOMATOES 185,918 960,176 than California or Florida growers. They 2 WATERMELONS 98,820 140,407 want to have a competitive edge in the mar- 3 CUCUMBERS 80,395 378,654 ket and they understand they have to pro- 4 LIMES 77,300 163,262 duce a superior product satisfying the 5 PEPPERS, OTHER (CHILI TYPES) 57,712 255,173 demands of the North American market to 6 SQUASH 54,069 204,546 accomplish this.” 7 PEPPERS 51,256 313,435 Forward-thinking companies are utilizing 8 AVOCADOS 49,591 443,889 a myriad of certifications to their advantage. 9 MANGOS 41,740 116,933 “Food safety is our top priority with regular 10 GRAPES 29,016 262,049 Primus Labs audits undertaken and GAP/ GMP certifications secured,” notes Tamayo *Source: USDA, Agricultural Marketing Service, Fruits and Vegetable Market News of Divemex. “We are also committed to train- ** Source: USDA, Foreign Agricultural Service, HS 6-Digit Imports ing for our employees and service providers Compiled by the Fresh Produce Association of the Americas (FPAA) throughout the supply chain to assure food- safety protocols are followed. We have secured C-TPAT [Customs-Trade Partnership companies carry the full range of certifica- producers, have great equipment and take it Against Terrorism] certification that enables tions, such as GlobalGAP, required to send seriously. However, you also have some our trucks to cross the border quickly and product to the United States, Canada and less-sophisticated growers with small efficiently, reducing the travel time of our overseas,” adds Tamayo. “Smaller growers are acreage. In the marketing chain, the product products. We also adhere to very high quality unable to afford the rigors of the certification can sometimes be bought from small farms standards in the greenhouses . packing facili- process and we are seeing many go under.” and large farms, and mingled together. As ties and at many checkpoints along the way. TPA’s McClung says Mexico’s producers food safety becomes more of an issue, the “Most of the larger Mexican exporting are extremely conscientious. “They are good small farmers will be at a disadvantage.” 10 # Reader Serv i ce

44 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 16 An increasing number of retailers are tions, the Mexican industry is investing in to represent a larger part of total cost to mar- suggesting or demanding certifications from new packaging technology to improve quali- ket, retailers will need to think in terms of their suppliers. “Almost all major retailers ty. “SunFed packs all of its vegetables in the residual shelf life of the products enter- have settled on certain protocols they expect ing their distribution center.” of their suppliers,” says SunFed’s Mandel. In addition to new materials, a wider “Some re-evaluate their programs annually. variety of size presentations is emerging. Programs tend to vary among retailers. Some “I’m seeing a movement toward more retailers specify different third-party certi- “Any Primus or third- biodegradable products,” explains Label fiers while others require social audits as Pack’s Castaneda.. In bell peppers, Sam’s well. All of SunFed’s results are posted party certification is Club [Bentonville, AR] and [Whole- online and we invite all customers and inter- sale, Issaquah, WA] are moving to presenta- ested parties to come visit our installations an added value to tion of 3-packs, 4-packs and 6-packs. For in Mexico to verify on a personal level.” coming into our seedless cucumbers, some distributors are always requires GAP, doing 3-packs, 4-packs and 6-packs in bags according to Gallegos. “Any Primus or third- stores. We know who for special customers. English cucumber is party certification is an added value to com- our suppliers are and moving another presentation of a 3-pack in ing into our stores. We know who our suppli- bag and 4-packs. The cactus pear and mini ers are and where our stuff is coming from. where our stuff is eggplant are moving into an insert tray Many of our suppliers are already being coming from.” made of polypropylene to avoid damage.” proactive in putting together a traceability Other challenges to the Mexican industry program and implementing the COOL include rising production costs. “Retailers [country-of-origin labeling] requirements.” — Raul Gallegos should be aware fuel costs have risen in Knowledge about who you do business Bristol Farms Mexico like the way they’ve risen in the with is critical. “It’s the same as procuring United States, and transportation is just one domestic or any other imported product,” of the additional costs the Mexican producer explains Kings’ Kneeland. “You deal with the has felt from this energy crisis,” according to growers you rely on and trust.” Xtend modified-atmosphere bags,” notes Fresh Farms’ Havel. “, boxes, wax, Mandel. “This allows us to deliver straight- seed, everything has gone up resulting in TAKING ADDITIONAL STEPS from-field freshness from Mexico to retailers additional cost to growers.” In addition to inspection and certifica- throughout North America. As freight comes “It’s getting more expensive and has been 7 3 80 # # Reader Serv i ce Reader Serv i ce

46 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 2 a long time coming,” states Del Campo’s comprised of red, yellow and orange pep- who anticipate a future they view as limit- Cathey. “Truckers have been going out of pers while the rest is spread equally across less. They believe money spent on food business for years and the gas prices have cucumbers and tomatoes. safety and emerging technologies are invest- exacerbated the problem. Transportation is ments in their future.” going to be an issue for a long time. No one AN EYE ON THE FUTURE “Mexico has the capability of producing should think dropping oil prices will mean Despite recent hurdles, the Mexican many of the commodities we want in this cheap freight rates again.” industry remains enthusiastic about its country and there is no reason to think it Financial issues also affect Mexican pro- future. “A friend from Florida made an won’t continue,” adds TPA’s McClung. duction. “A big hurdle for further expansion insightful comment on a recent trip to Mexi- Through , focus and relation- is capital,” states Eurofresh’s Myers. “Most of co,” explains SunFed’s Mandel. “In Florida, ships, Mexico should continue to hold its the small operations are struggling to sur- many growers sense a difficult future own in many markets. “We buy all of our vive and many have defaulted on loans.” because of water issues, the cost of land and stuff through the food terminal in Toronto, Divemex is realistic about the U.S. econ- the questionable availability of labor. Some so the Mexican product competes against omy and is producing a mix reflecting growers have already sold off land or part- stuff from everywhere else,” says Buttler of the more basic needs of consumers, nered in urban development. Conversely, in Pete’s Frootique. “At our level, the quality is explains Tamayo. “Divemex is focusing on Mexico, there is a tangible excitement pre- comparable. Our buyer looks at all the prod- its core items of colored bell peppers, beef- sent. Today, SunFed works with a new gen- uct on the market and picks out the best steak tomatoes and cucumbers. Approxi- eration of disciplined young growers, uni- that day and Mexican product does make his mately 80 percent of the total volume is versity-trained and technologically savvy, selection.” pb

48 PRODUCE BUSINESS • DECEMBER 2008 PRODUCE BUSINESS is accepting nominations for its Fifth Annual 40 Under Forty Project, which recognizes the produce industry's top young leaders.

Honorees will be selected based on their professional accomplishments, demonstrated leadership and industry/community contributions. To be eligible, nominees must be under the age of 40 as of January 1 (People born after January 1, 1969).

To nominate someone, please fill out this form by March 1, 2009, and fax back to 561-994-1610.

Once nominated, the candidate will receive forms from us to fill out asking for detailed information. A candidate only needs to be nominated one time. Multiple nominations will have no bearing on selection.

ABOUT THE NOMINEE: Nominee's Professional Achievements: ______First Name ______Last Name ______Approximate Age ______Company ______Position ______Nominee's Industry/Community/Charitable Activities: Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______ABOUT THE NOMINATOR: E-mail ______First Name ______Last Name ______In 100 words or less, describe why this person should be nominated: Company ______(You can use a separate sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______

Nominator information is for our use only and will not be shared with candidate or have a bearing on selection. For more information email: [email protected] South American Imports Freight costs and fluctuating dollar valuations make shipping product from the exporting countries into the United States a major challenge.

BY DUANE CRAIG

Skyrocketing agricultural inputs and curren- will have to compete with higher costs for staple cy fluctuations are expected to figure promi- foods. The other variable he sees is the value of the nently this year for importers of South Amer- dollar relative to other currencies. ican produce. “The increasing value of the against the dollar means the dollar competes for fruit with the Brian Schiro, sales associate, Jac. Vandenberg, euro,” he reports. “Chileans know these currency Inc., Yonkers, NY, says trying to keep both ends of evaluations swing on a vast pendulum and they his client base happy will be difficult this season even out over time. They also recognize they have and into early next year. “The costs in South Ameri- a lot of partners in retail in the United States and ca, and specifically Chile, are skyrocketing for they are working hard to protect them. Even things such as fuel, labor, energy and packaging, though they might actually be able to get a better meaning growers and exporters are working on price for fruit in Europe, they have long-standing very thin margins.” North American relationships, and they are work- Matt Curry, president, Curry & Co., Inc., based ing hard to retain those associations of trust that in Brooks, OR, says the costs of growing coupled have been built over time.” with a roller-coaster market during the past two Brad Cantwell, vice president of North Ameri- years resulted in a decrease of onion hectares in can sales, Dole Deciduous-Chile, a Bakersfield, CA- production. The resulting crop flow to the market is based subsidiary of Dole Food Co., Inc., Westlake expected to be steady this season with more stable, Village, CA, agrees the dollar’s value is having a sig- but higher prices. nificant impact on the market, but he sees the pic- The price of South American fruit at retail is ture differently relative to growers’ responses. going to have an effect on consumer purchase deci- “Growers in Chile are trying to avoid the U.S. mar- sions, explains Tom Tjerandsen, managing director, ket as much as possible because they are getting North America, the Chilean Fresh Fruit Association better prices on the worldwide markets. They are (CFFA), Sonoma, CA. He says the per pound prices all trying to find other areas to sell their fruit of produce from South America during the winter because the markets here are just not paying for the costs.” He claims part of the issue lies at retail where historical prices are often used when considering from whom to source product. Today, historical prices no longer leave enough room for the growers to survive. Since only the best and biggest fruit is sought after in the North American market, grow- ers sending it through the chain often can’t get the returns to cover costs. Plus, the traditional structure of the process is undergoing change. “There are a lot of dynamics going on,” he notes. “Five years ago, my sister company down in Chile was sourc- ing 100 percent of my fruit. This year, I am proba- bly going to be sourcing over 30 percent directly from my office here in North America because we are talking directly to growers. The growers are try- ing to cut their costs.” Shippers will continue to search for new mar- kets, stresses Mark Greenberg, senior vice presi- dent of procurement and CEO, Fisher Capespan

50 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 62 U.S.A., LLC, a Gloucester City, NJ-based subsidiary of Capespan Group Holdings, Ltd., Bellville, South . “That will include places such as Russia and Eastern Europe.” Shippers will be inclined to be pickier about what they send into the North American markets by holding back product that may be marginal or prone to discount at store level. Shippers will also be looking to their business partners to get them the returns they need to cover costs. Peter Kopke, president, William H. Kopke, Jr., Inc., Lake Success, NY, also notes the influence of other regions on the South American deal. “You have all of the Eastern European countries now involved. Russia is a tremendous factor in the market right now. That changes things. They are buying. I don’t know how much they are throwing away, but they are buying. The forecast increases a little bit every year. Europe, have to come to the United States, they we would get fairly predictable flows and we Poland, Russia and Czechoslovakia are huge come with huge numbers. You only get so would also get predictable ranges of quality. new factors in the business.” many chances to cry wolf and we got the This year, that was all over and we were John Pandol, manager of Mexican sourc- impression that’s what was going on [a year obviously getting the leftovers.” ing and special projects, Pandol Bros., Inc., ago]. Historically, our Chilean grape deal Caliman International, Plantation, FL, Delano, CA, says South American growers has had a bit of a predictable curve to it in faces a double-edged sword when it comes ought to rethink playing the worldwide mar- terms of supply. This past year, we got half to importing small variety papayas from ket to the detriment of the North American of our program in the last month. It was Brazil, states Andres Ocampo, director of market. “You can’t have it both ways. They highly unpredictable week to week and operations. Tourist flights from Brazil to the play the spot market and then, when they there was no orderly marketing. Normally, United States are increasing because of the 12 # Reader Serv i ce

52 PRODUCE BUSINESS • DECEMBER 2008 LGS Specialty Sales, Ltd. 718-542-2200 • 800-796-2349 • Fax: 718-542-2354 www.lgssales.com

Reader Service # 8 54 Readers Service #24 Readers Service #7 Readers Service #3 PRODUCE BUSINESS• DECEMBER 2008

Readers Service #9 Reader Service #77 past year. diversion to Europe andotherplacesthis volume backto theUnitedStates afterits PRICING STRATEGIES ian gins, butOcamposaysaweakening Brazil- time, theweaker dollarmeanstightermar- is picked whenready to eat.At thesame his product, whichneedsto gobyairsinceit weaker dollar, creating more spacefor h er”h as “I’moptimisticretailers the year,” hesays. have to chain-store consumers throughout ing importance SouthAmericanfruitwill retailers. “I’moptimisticaboutthecontinu- American producers andNorth American as onewithlarge opportunities for South thepricehasto goup. instances, margin insomecases, inmanyother prices, headds. Whilehewillreduce his putout what consumers want andstillholddown challengingto hisliking.It’s ity to stone fruitbecause hehasn’tfound thequal- director ofproduce, hasstayed away from ularly for grapes. Darvel Kirby,business American produce duringthe winter, partic- relies onSouth based chainwith48stores, caught on. United States already dothis, others haven’t could payoff,andwhilesomeareasofthe nity to promote mediums inbulkandbags with more smallsizes. Seizingtheopportu- tighter suppliesthantheprevious years says thisyear’s Chileanoniondealwillhave motions. For example, Curry& Co.’s Curry the crop comesinhandyfor planningpro- crop variables. ties related to amount theywant. sumers to selectandpayfor onlythe packs, preferring insteadto allowcon- Englestays away from large pre- months. stocked through thewinter ly 500SKUs on theSouthAmericandealto keep itsnear- it justsitsontheshelf.”Baesler’s depends will buybecauseitdoesn’tdousanygoodif can to keep thingsinapricerange thatthey andwe tryto doeverything we consumers point thatwe couldn’tdoit.It’s hard onthe all ofourcompetitors, butitjustgotto a little bit.We were tryinghard to stay under take lessgross andraise somepricesjusta IN. “We decidedwe were goingto have to ket, asingle-store operation inTerre Haute, Paul Engle, produce manager, Baesler’s Mar- “We have doneacoupleofthings,” reports hold thelineonpricesatconsumerlevel. expect, retailers are considering ways to of production affectthepricesgrowers Fisher’s Greenberg seestheU.S.market , aLubbock,TX- knowingtheconditionof In manycases, Meanwhile, suppliers pointto opportuni- As currency valuations andhighercosts real could causeashiftofmore product Reader Service # 55 those who don’t plan four to eight weeks ahead by potentially removing cold storage Expansion Into North America from the process.

BENEFITS OF PLANNING stunning variety of fresh South Amer- would be used to promote Chilean blueber- Others counter that making some plans ican produce is bound for North ries during the seasons when North Ameri- has its advantages. “The United States is A America. Committee of Producers can blueberries are not available. The effort always going to be the most important mar- and Exporters of Fresh Fruits And Vegetables has resulted in many retailers allocating ket for South American foods,” says Vanden- to the United States (Copexeu), Ciudad year-round blueberry space. berg’s Schiro. “Things in some weeks could Autonoma de Buenos Aires, Argentina, rep- Ever since North Americans discovered end up being a little bit tighter, so it’s to the resents produce businesses in Argentina, flat, sweet onions, they’ve demanded year- retailer’s advantage to book in advance. Still, which supplies cherries, blueberries, 14 vari- round fresh supply. South America has since it’s difficult to predict how often that is eties of pears and 11 varieties of apples. stepped up to fill that need. Peru has been going to happen or when that is going to Tom Tjerandsen, managing director, supplying some of those volumes along happen until you get into the season.” North America, Chilean Fresh Fruit Associa- with Chile. “The reason we have Chilean Fisher’s Greenberg sees the time coming tion (CFFA), Sonoma, CA, points to some sweet onions from December through when most deals for South American fruit movement toward the introduction of other March is because Chile is the best place in will be structured in advance with trans- fruit to Canada and the United States. In the world to grow sweet onions during our parency throughout the deals. He says that early 2009, depending upon political fac- wintertime,” states Matt Curry, president, should result in steady supplies of quality tors, the importation of pomegranates may Curry & Co., Inc., headquartered in Brooks, fruit at predictable prices for everyone once again be allowed, he predicts. He also OR. “It is more expensive to grow there and involved. says importation of citrus is getting very freight is more expensive, but the reason we While many only play the deal using close to approval. are there is that you get the optimal quality middlemen, CFFA’s Tjerandsen points to Xavier Equihua, managing director, Fed- for store shelves.” cheaper ways to acquire South American eral Strategies Group, Washington, D.C., and Brazil grows a number of fresh fruits and produce such as dealing directly with grow- U.S. representative, Chilean Exporters Associ- vegetables in volumes suitable for export ers. But the process is highly risky because ation, Santiago, Chile, is fairly sure the law and one in particular could be poised to cap- of the perishable nature of the product, the will be in effect before the season starts in ture the attention of a certain market seg- number of import and export requirements May or June. ment to the north. Andres Ocampo, director and the general transportation issues. Using Chile exports 72 varieties of fruit to the of operations, Caliman International, Planta- a process involving an exporter, importer United States, and more than half of that tion, FL, characterizes the small papayas his and wholesaler adds costs but minimizes volume (approximately 60 million boxes) is company imports from Brazil as holding the headaches and losses. grapes. The Chilean fruit deal begins with “best overall quality,” as compared to other One of the potential loss areas handled cherries and progresses through peaches, regional offerings. Because these small by wholesalers is quality issues. Caliman plums, nectarines and on to an “avalanche” papayas are shipped by air and are some- must deal with product if it doesn’t meet the of grapes, according to Tjerandsen. what of a specialty item, they come at a pre- buyer’s expectations, reports Ocampo. A South American blueberries are on a fast mium price. good way to approach this market is plan- growth track, notes Tjerandsen. Fueling that Still, the actual market for the smaller ning ahead and not showing up at the last is a collaboration between the Chileans and papaya is wide since it appeals to smaller minute looking for a great deal, he adds. the North American blueberry industry. For families that are more of a norm in developed Most of the product is being moved by two years in a row, the Chilean blueberry countries. While the price at retail per pound ship and because ships use a very unrefined industry has made a no-strings donation to may be two or three times more than a large type of fuel, the rising cost of crude oil has its sister industry in the north with only a variety papaya, the convenience of the fruit is not had a significant impact on shipping gentlemen’s understanding that the money a reason many people buy it. pb costs for fruits and vegetables, explains Tjerandsen. High-margin fruits, such as berries, are moved by air through Miami, will continue to value the product. We’re past may not work this year. Cantwell FL, but even that is changing as improve- going to make every effort not to bring in thinks there may be some merit to consider- ments to modified-atmosphere techniques product that can’t find a market and doesn’t ing smaller package sizes to help minimize are making advances and adding longer life have a profitable economic return for a ship- sticker shock at the register. to the more perishable commodities. per. We just need be efficient in what we do Kopke of William H. Kopke Jr. agrees “The key to success for the Chilean busi- and in how we do it.” with staying flexible, adding, “You cannot ness is movement,” states Dole’s Cantwell. “It is important for us to take advantage make plans too far in advance in this deal “You need to bring the fruit in, and you need of opportunities,” notes Dole’s Cantwell. because it is subject to radical changes. The to have enough customer demand to move “For instance, we may have a request for longer you can delay making your plans, the fruit within five days.” Market prices tra- Thompson seedless grapes, but we see a big the better off you are. Anybody who made ditionally fall beginning somewhere in volume of Flames coming. We want to flip long-term deals this past year didn’t get the December all the way through February. that over and give the retailer a chance to merchandise in the first eight weeks — they Carrying inventory more than five days move more fruit at a more aggressive retail got a fraction.” means retailers staying competitive and price.” Flexibility can create other opportu- Pandol of Pandol Bros. points out the adjusting their prices as the season moves nities. Advertising fruit at a certain price at “beauty in playing your cards close to the will be stocking fruit that was purchased at a a certain time just because it worked in the hip.” He says fresher product can flow to price higher than its selling price. pb

56 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 72 FIELD NOTES

Dealing With CHILEAN EXPORT TRANSFORMATIONS Chilean exporters of winter fruit present their vision for the United States.

Reporting from Santiago, Chile, Isabel Quiroz is managing director of iQonsulting Ltd., a Chilean market consulting company focusing on developing innovative advising solutions for the fruit business.

he business model for international trade in fresh fruits has Fruit Co., headquartered in Westlake Village, CA, Del Monte Fresh Pro- changed substantially in the last decade. Those changes duce N.A., Inc., headquartered in Coral Gables, FL, and Chiquita may have begun earlier, but their manifestation in some Brands International, Inc., headquartered in Cincinnati, OH, have companies has been significant in recent times, and the reduced their operations, concentrating on the most profitable and, Chilean exporters, who are relevant players in this business, specifically, on export activities. Chiquita closed its position in Chile haveT confronted these changes head-on. completely and remains purely as an importer. Among the many variations that have taken place in this business, Other large companies, such as David del Curto S.A. (DDC), Santia- the greatest change is that we are facing a new consumer who is more go, Chile, were hit early on by high cost structure and, possibly demanding, more informed and more knowledgeable about fruit and because of this, began restructuring so that today the company faces who is not prepared to pay for something that doesn’t provide plea- the crisis on a better footing. In effect, according to Rodrigo Duran, sure. If we add to this the emergence of new fruit providers, greater commercial manager, “DDC began a significant restructuring four years availability of fruit, new and more attractive varieties, and safety and ago, selling three fields, the Indomita vineyard and other activities of traceability demands, among other issues, we must conclude we face a the organization, incorporating new commercial partners from the mature, difficult international market where prices are a variable not Solari family in Chile who brought new capital, and took over 14 per- controlled by just one country, much less by just one exporter. cent of the company. The company reexamined the future of the busi- In this context, Chilean businesses have undergone several trans- ness and finally decided to bring on board more capital, taking posses- formations with the goal of better adapting to them. An important sion of 51 percent of the organization and thus control in the last year. aspect is that the large international organizations, such as Dole Fresh The final injection of capital was of some $800 million U.S. The organi-

58 PRODUCE BUSINESS • DECEMBER 2008 zation reduced in size, reduced the number of three years. The season began with the first son. Nonetheless, Bon emphasizes the need personnel and improved management. Cur- harvest of Newstar cherries, a new crop for Ben for good quality and condition. “The producers rently, DDC is balanced, with a clear direction David, on Nov. 15. The rest will consist of know which section of the plantation they can ahead, and prepared to grow. We are examin- stone fruit, kiwis, apples, pears and a greater obtain this type of fruit from — one suitable for ing new investments in Chile and studying proportion of table grapes,” Correa continues. long trips. Furthermore, they should focus the possibilities in Peru and Brazil so as to begin a “The volume will increase slightly to reach 2.2 production of seedless on obtaining a product process of going international. People are million cases.” of good size, color, taste and condition.” excited about the organization again.” With a significant position in the United Although it is very probable the total vol- Currently DDC has three divisions: DDC- States, Agro-Frio is controlled by the Pandol umes of grapes exported this season will Agricola with 1500 hectares in production, family and will keep the 7 Amigos brand, increase, the increase of CFN’s exports to Asia DDC-Agroindustria, owner of the processing according to Carlos Herl, general manager. He will be rerouted from the volume usually des- and refrigeration plants, and DDC-Trading. believes Agro-Frio’s directors will approve tined for the United States, possibly reaching 5 Each division has its own administration and externalizing export administration upon ana- to 7 percent of the seedless. This means objectives.

Projected Volumes “The strategy in Chile is, over a period of Chilean exporters face a five years, to reach 14.5 million cases, some 34 percent more than in the season just past,” mature, difficult international indicates Duran. For the season just begin- market where prices are a ning, a volume of about 12 million cases is projected, and DDC will continue with a small- variable not controlled by just er volume of stone fruits and mid-season one country, much less by just grapes, which face price problems, and just carry out programs with supermarkets or direct one exporter. sales, with a strong position in Europe and Asia. When facing a crisis, adds Duran, “It’s bet- ter to move with established programs and lyzing the reduction in cost. For this season, 60,000 cases won’t enter the U.S. market this reduce speculation.” DDC has a strong posi- Agro-Frio hopes to make 2.2. million cases, of season. Even though the volume is low in tion in China and seeks to consolidate this which 90 percent will be table grapes, that will comparison to the 50.9 million cases the Unit- with more supermarket programs. start to arrive in the United States during the ed States received in the past season, he Businesses of around two million cases first two weeks of December. believes this year many exporters will avoid have been the most severely hit in terms of Compania Frutera Del Norte, S.A. (CFN), the U.S. market, considering the economy, and costs. Their operation demands significant Santiago, Chile, exported 1.75 million cases of put their efforts in the Asian market, where administration, raising the costs per case fresh fruit during the 2007/08 season, of which CFN has a recognized brand of quality. because of the lack of scale. Among the most 1.6 million were table grapes, according to the CFN’s competitiveness in the United States attractive solutions that have emerged in the Eximfruit 2008 annual report of Chilean exports. rests on its traceability system, which will last year is the creation of Santiago, Chile- Isaac Bon, CFN general manager and direc- undergo an initial test this season. Considering based Scramble, Ltda., a shared- tor, spoke exclusively with PRODUCE BUSINESS U.S. supermarkets are progressively more organization in which Francisco Correa, man- about his perspectives of the season in Chile demanding about food safety, CFN’s traceabili- aging director of Ben David S.A., Santiago, and CFN’s general position in the United ty will be a highlight with respect to the other Chile, is one of the principal partners. Correa States, as well as the changes that have been suppliers. Bon believes traceability will shortly says one of the objectives behind the creation brewing and pointing to a redistribution of be a requirement for doing business. was to reduce administrative costs while focus- exports of table grapes in most markets, A significant increase in production costs ing on negotiations in packaging and diminishing the participation of the United includes table grapes’ need for manpower, and on the great efficiency of the system. States during the 08/09 season. which is increasingly scarce. An increase of He and his partners hope Scramble will The main markets for seedless grapes from prices at the destination means giving the export 5.3 million cases in the 2008/09 season, Chile are the United States and Europe, which market the high-quality fruit it demands and with fruit from Ben David, Agro-Frio S.A., San in the last two months have undergone various diversifying the markets. Felipe, Chile, Mr. Fruit Ltda, Santiago, Chile, types of crises that have tangibly increased the Bon states he doesn’t want to be a pes- and other producers in the 100,000-to-200,000- cost of living. The increase in cost of milk prod- simist, but Chile’s position in the United case segment. The reduced administrative ucts, fruits and vegetables could particularly States in the 08/09 season seems vulnerable. costs in each business will be in the region of affect fresh Chilean fruit exports. In this context, He points out that the start in Chile could be 50 percent, even more if the current rate of it is difficult to predict the consumer’s attitude, slowed down by the larger stocks of grapes in exchange is maintained (around 600 CLP but Bon believes a way to confront the situation California and that the prices of Chilean Chilean peso), says Correa.. is to diversify the distribution of seedless grape grapes may be too high. “We have diversified in the marketplace shipments as much as possible, with special He believes beginning with reasonable and currently have an important position in emphasis to Asian markets. prices to encourage movement and demand England and continental Europe, with just 30 This past season, 9 percent of CFN’s seed- — in addition to high-quality fruit — will help percent in the United States. We’ve begun to less grape exports went to Asian markets, and the whole industry. “There has to be an effort use the Scramble brand for 10 percent [of our the aim is to enhance the standing of these in in the group to send fruit that adjusts to what exports] this year and will reach 100 percent in this market, especially Thompson and Crim- the market wants,” Bon notes. pb

DECEMBER 2008 • PRODUCE BUSINESS 59 Win Big With Texas Produce Although production is down slightly, the Lone Star State continues to create marketing programs and expand importing efforts.

BY DUANE CRAIG

Sandwiched between Western and Eastern other major growing areas, Texas has unique condi- U.S. burgeoning production areas, Texas pro- tions where produce can be grown that can’t be duce increasingly takes on a regional flavor. duplicated anywhere else in the United States.” Jeff Brechler, sales and production with J & D The state boasts an array of diverse growing Produce, Inc., Edinburg, TX, agrees, adding, “What regions that allow it to supply a slew of fresh fruits we enjoy, here in the valley, is exceptional soil. It’s and vegetables to surrounding markets and beyond. a fertile soil as opposed to a heavy sand that doesn’t John McClung, president, Texas Produce Associa- retain nutrients and requires constant fertilization. tion (TPA), Mission, TX, can identify very few items Soils are rich and our fertilization programs are the Lone Star State doesn’t offer on a seasonal or more natural and occur less often [than in other year-round basis. “Of course, if you are shipping from regions]. Across the board, the vegetables are sweet- the Midwest to the East — given fuel costs — it’s a lot er, the citrus is sweeter and we enjoy a unique loca- cheaper to ship through Texas tion here in the valley.” than it is to come through points The sweetness is especially apparent in one in the West. I’ve seen a trend in variety of grapefruit, and the soil as a contributing the past two or three years factor, notes Paula Fouchek, marketing director, toward buying locally as much Edinburg Citrus Association (ECA), Edinburg, TX. as possible. Retailers and food “Our sweet Texas red grapefruit is grown in the buyers should know that Texas southernmost part of Texas known as the Rio is up — we’re in full production Grande Valley, near the warm waters of the Gulf of and we’re ready to do business.” Mexico. The rich delta soils of the Rio Grande River Texas’ vast growing regions and the warm, humid climate produce very thin- allow it to support a wide selec- skinned, very sweet and juicy fruit — so juicy, in tion of crops throughout the fact, we say they are heavy for their size.” harvesting season, explains Ryan Wolverton, operations TOP COMMODITIES director, Frontera Produce, Texas is one of the five leading states in veg- Ltd., headquartered in Edin- etable production, and in 2006, Texas produced 3.6 burg, TX. “Produce grown in percent of the total U.S. vegetable crop, according Texas or Mexican produce pass- to the U.S. Department of Agriculture (USDA) ing through Texas is able to National Agricultural Statistical Service (NASS). supply the Midwest. Since 2004, Texas has also ranked either second or “The East and West Coasts third in production of oranges and grapefruits. have advantages to supplying The state produces freestone peaches and in the coastal produce needs, but 2007, it turned in a volume of 6,900 tons and pro- shipping out of Texas allows duced 5,500 tons in 2008, according to NASS. Peach you to supply fresher product production ranged between 750 and 9,900 tons to customers in the Midwest,” between 2002-06, with the low year’s figure result- adds Wolverton. “Less miles to ing from drought, lack of winter chilling hours and travel means you can get the hail storms. Texas grape production has declined product to your customer in a over the past three years from 8,500 tons in 2005 to shorter time once it is harvest- 4,100 tons in 2007, predominately due to weather ed from the field. And just like events.

60 PRODUCE BUSINESS • DECEMBER 2008 Top Texas commodities include carrots, cantaloupes, cabbage, onions and watermel- on. Texas also produces significant volumes Imports On The Rise of sweet corn, honeydew melons, chili pep- pers, bell peppers, spinach, squash, toma- toes and cucumbers. Production of greens is hile some argue Texas has pulled effects on crops, McClung adds that the on the rise. back as a fresh fruits and vegeta- Mexican imports are largely grown by U.S. J & D’s Brechler says the Texas-devel- W bles supplier, John McClung, presi- firms in Mexico. McClung goes on to talk oped BetaSweet maroon carrot is one of the dent of the Texas Produce Association (TPA), about how much of the Mexican imports are state’s more unusual vegetable offerings. headquartered in Mission, TX, points out the actually grown with U.S. dollars in Mexico, “Aside from the obvious color, the other state is shipping more produce than ever so they are imports from Mexico that are unique aspect is its nutritional benefits. The before. “It’s a little over half imports and the grown by U.S. firms for U.S. consumers with carrot has increased levels of beta-carotene other half is domestic production,” he U.S. dollars. “We’re seeing incremental and the purplish color contains the antioxi- explains. “We’re importing large volumes of increases every year in most Mexican com- dant anthocyanin.” onions, huge volumes of watermelons and modities. We are at the point, and have ECA’s Fouchek says unique grapefruit other melons. We’re importing a lot of car- been for several years now, that over half of varieties offer a fresh twist to Texas’ offerings. rots and a lot of tropicals such as mangos, the vegetables and the tropical fruit that we “Another reason that our fruit is special is papaya and avocados.” sell to both the Texas market and to the rest because Texas is the home to all red grape- This is consistent with national trends. of the world are imported from Mexico. fruit varieties. It started in 1929 when a Ruby According to Increased U.S. Imports of Fresh “The important thing to know about that Red was found growing on a pink grapefruit Fruit and Vegetables, a report conducted in is it’s not accurate to simply portray them as tree. Since that time, newer varieties, such as September 2007 by U.S. Department of Mexican imports,” he stresses. “These are the Rio Star, which is seven to 10 times red- Agriculture (USDA) Economic Research Ser- fruit and vegetables that are produced large- der than the Ruby, have been developed by vice (ERS), the United States has “increasing- ly with U.S. dollars to U.S. specifications and Texas scientists. The skin of the Rio has an ly become a net importer of fresh produce.” that are always intended for the U.S. market. overall deep blush on the exterior peel as Not surprisingly, the lion’s share of those The fact that they are being produced in compared to the yellow skin of the Ruby imports in total comes from Canada and Mexico or Central America or South America with touches of blush on the peel. Mexico, but when it comes to fresh fruit, 36 is a geographic reality, but it is not without “The unique sweetness of our grapefruit percent of the U.S. imports are actually com- heavy involvement from U.S. producers. is an extremely important reason why our ing from Central America. You have to look at the geography and fruit is special,” she adds. “It just becomes Mexico continues to increase shipments the history of the development of the Mexi- more versatile. Segments of our grapefruit bound for the United States. In 2005, Mexi- can industry. Mexico has no provision in its taste great with other fruits and yes, even can fresh fruit and vegetable imports banking system for production loans. As a with vegetables. Sweet segments can top a through Texas equaled 1,552,685 tons, Mexican farmer, you can’t go to the bank salad, sizzle in a salsa or create a captivating while that number totaled 2,020,490 tons and get a loan to get your crop in. That’s dessert. And because of this versatility, our in 2007. why U.S. importers have effectively Texas red grapefruit can be easily promoted Acknowledging weather events and their bankrolled Mexican producers.” pb and enjoyed during the fall and winter holi- days as well as special events such as Super Bowl and Valentine’s Day. We always encourage people to stop by our Web site for big deal for us, too.” ing those raw products into highly mar- exciting recipes and merchandising ideas.” TDA’s food marketing program, along ketable commodities. Frontera’s Wolverton likes to highlight with regional field marketing staff, help Fresherized Foods, Fort Worth TX, uses Texas’ contribution to the sweet onion catego- build recognition for Go Texan and Texas ultra-high pressure processing for foods, ry. “Every growing area throughout the Unit- foods through a wide variety of activities, beginning with avocados. “As a foodservice ed States has its unique items and consumers such as coordinating Go Texan promotions avocado supplier, we have the advantages of know when they are available,” he says. at retail, food fairs and festivals across the being a centralized manufacturer in the “Every February — like clockwork — Fron- state; establishing a strong Texas presence at United States,” explains Cindy Wong, vice tera begins fielding calls as to the status of state, national and international trade president of foodservice sales. “We offer our Texas 1015 onion crop and when it will shows; and spotlighting Texas foods through superior-tasting Fresherized avocados and be available. There is an anticipation and regular mail-outs to food editors at newspa- competitive freight rates to our distributors excitement when the first bags of the new pers across the state with articles, recipes so our customers and end users can ulti- crop come off the line and you know that and story ideas for Texas products. The pro- mately benefit from our quality avocado.” there are consumers waiting to buy that bag.” gram also links buyers interested in Texas According to Frontera’s Wolverton, “Pro- food products with the Go Texan members motional support throughout the state has INNOVATIVE MARKETING that produce them and coordinates Go been enormous over the years. The avenues The Texas Department of Agriculture Texan food fairs, seminars and workshops to promote locally grown items at a home- (TDA), Austin, TX, as well as other state for school foodservice buyers at school dis- town or provide a organizations, figure prominently in the tricts across the state to encourage and the chance to add a feature of Texas-grown marketing of Texas produce. “Suffice it to increase the purchase of Texas food. produce to its menu is a great opportunity. say that food is a big industry in Texas,” The state produces an incredible array of Texas 1015 onions, Hempstead watermelons states Bryan Black, assistant commissioner food, and Black points to a myriad of entre- and Texas cabbage are just a few of the for communications. “Food marketing is a preneurs and manufacturers that are turn- items that help support the locally grown

DECEMBER 2008 • PRODUCE BUSINESS 61 62 Reader Service # 44 PRODUCE BUSINESS• DECEMBER 2008 its uniquenessandseasonality.” in requests for theTexas 1015 onion dueto Produce hasseenalarge increase Frontera initiative. Even outsidethestate ofTexas, ADAPTING TOCHANGE uto emo al ai oensure duction team on adailybasisto ance department thatworks withourpro- hasavigorous quality-assur- Frontera ple, biggest impactover thepastyear. For exam- ability are two areas thathave seenthe Frontera’s Wolverton. “Food safety andtrace- industry ingeneral ischanging,”explains is grown orshippedfrom. “Theproduce innovation regardless ofwhere theproduce industry ingeneral andseem to callfor industry are more systemicto theproduce T million boxes peryear.million boxes 1.5of orangeshasrangedbetween and1.9 years, production season. Duringthepastfive 12about percent lowerthanthe2006-2007 thisyearare at1.74 forecast millionboxes, Oranges millionboxes. 5.2and7.1 between years, production hasranged grapefruit Over Service(NASS). tistical Sta- NationalAgricultural (USDA) Agriculture year, according totheU.S.Departmentof 17 downabout to be percent from thepast offresh red grapefruit. lion’s share Still,Texas acres. fornia’s 350,000 hasthe Florida’s andCali- acres more than600,000 butit’sasmallamountcompared to 28,000, atabout are acres The stable citrus-growing and25percentpercent oranges. grapefruit million 40-pound cartons.” cartons.” million 40-pound eightto10 fresh marketofabout satisfying areas.mary production We are lookingata loses. The losseswere lessintheWest’s pri- ashore, haveDolly came suffered significant tothegulfwherethe valley, whichisclosest thoseontheeastsideof ducers, particularly there andthegeneralsentimentissomepro- resulted inlarger sizes.There isanoffset us,butDollydidandthathasalso affect Dolly. toHurricane Ikedidnot our grapefruit 10somewhere between and20percent of (TPA),Association Mission,TX.“We lost John McClung,president, Texas Produce upward reports astheyear drawstoaclose, oefcosaffectingtheTexas produce Some factors Grapefruit production inTexasGrapefruit production isforecast McClung says the citrus mix is about 75 mixisabout thecitrus McClung says that began in October will be trending willbe inOctober that began similar tothispastyear, andharvests industryislookingatayear he citrus Crop Production Crop the pastfive tices possible.” most sustainable andefficientgrowing prac- findthe irrigate —floodordrip.You want to er. Anotherexample maybetheway you new seedthatgrows faster andtastes sweet- may besomethingassimple as plantinga core isimportant, addsWolverton. “That business whilemaintaining your company’s have traceability backto thecaselevel.” allow usto tag atthepalletlevel butalsoto tastes that notonly run very successfulbeta lev cient way to integrate traceability atthe case been working onestablishing aneffi- have and information technology department Ouroperations team the packingprocess. every possibleprecaution istaken during in 2006. in 2006. onion’s previous lowof21.6 millionpounds however, anupward jumpfrom summer in 2004of103.6 millionpounds.This was, millionpoundsin2007 afterahigh in at40 pounds in2005,andsummeronionscame 2007, downfrom million ahighof465 onions dropped to312 millionpoundsin from 204millionpoundsin2003.Spring equaled 43.2millionpoundsin2007, down 2004 of323.7millionpounds.Cantaloupes lion poundsdownfrom highsin2003and was145.8 mil- Cabbage production in2007 with alittlemore than723millionpounds. in2006 and 2005,watermelonsrebounded in2004 pounds in2003.Afterdeclining pounds in2007, downfrom 770 million ons weighedinatalmost422million in 2004of704 millionpounds.Watermel- from high itsrecent pounds, asteepdecline Carrot million in2007 production was30 trending downward forthepastfive years. inTexas grown duce actually hasbeen the reservoir.” have andreserves goodgroundwater in we this year thananytime history,so inrecent plenty ofmoisture sincewehadmore rain “We’ve season,”hesays. ful vegetable had this timetothinkwewillnothave asuccess- timeandwehave noreasonthe same at goinatabout Alotofothercrops October. issues.“Wesafety putinouronionsmid- as hotpepperswilldrop food- duetorecent dealfrom Texas,etable butthinksitemssuch el. Over thepastfewmonths, we have Finding ways to reinvent howyoudo According to NASS, theamountofpro- According toNASS, astrong winterveg- McClung expects pb pb Florida Strawberries Make Retail Splash Bountiful strawberries take center stage in the produce department thanks to consumer education, promotional efforts and great-tasting fruit.

BY COLLEEN MCGINN

The Florida strawberry region has made ing awareness about Florida strawberries. This sea- great strides and holds on tight to its Winter son, it is taking a multi-tiered approach to promo- Strawberry Capital of the World title. tion, starting with the message, Nutritious and Deli- cious — Florida Strawberries — A Taste of Summer All But when growers entered this unproven mar- Winter Long. “Our message will let everyone know ket about eight years ago, they got off to a rough when our fruit is available, how it is grown and the start. In Florida’s wet, humid environment, growers convenience and health benefits of eating fresh struggled to find a variety that could produce good- Florida strawberries,” states Sue Harrell, marketing tasting fruit that shipped well. Back then, most peo- director. “Nutrient-dense foods are those providing ple didn’t know Florida produced strawberries in the greatest amounts of vitamins and with the winter and most consumers considered straw- the fewest calories, and strawberries fit the bill. berries a summer fruit. FSGA is its message primarily to the These factors that created barriers to market national, regional — east of the Mississippi — and have since disappeared. In 2007, Florida growers statewide media. sold $329 million worth of strawberries, up from FSGA is also focusing on product placement. the $167 million in 2000. This rapid growth is due “One of our projects will be to send product — bas- to several factors, such as better berries, a strong kets of Florida strawberries — to television news marketing effort and consumers making strawber- anchors and weather reporters for on-air use. Facts ries part of their year-round diet. to share with viewers will be included with the bas- The Florida Strawberry Growers Association kets,” Harrell explains. Promotional efforts will also (FSGA), Dover, FL, has been instrumental in creat- include reaching consumers with the Florida straw- berry message through television, radio and news- paper interviews as well as press releases and spe- cial promotions. Maintaining the healthful reputation of Florida strawberries and communicating food- safety issues to retailers is also at the forefront of this season’s campaign. FSGA has created a poster for retailers to use as a guide about Florida strawberry storage, handling, selection and sales for store employees. The marketing division of the Florida Depart- ment of Agriculture and Consumer Services (FDACS), headquartered in Tallahassee, FL, has focused on promoting Florida strawberries via super- market store ads. More than 10,000 stores cooperate with its strawberry promotions and incentive pro- grams. Dan Sleep, development representative supervisor, points to a strong correlation between store ads and the industry’s growth. “Advertising works. Thanks in part to FDACS’ relationship with major retailers, growers have experienced record sales year after year.”

DECEMBER 2008 • PRODUCE BUSINESS 63 64

Reader Service #37 Produce, Inc., Dover, FL. Bob Hinton, salesmanager, Hinton Farms been impactedbythehurricanes,” reports far, we are rightonscheduleandwe haven’t of inclementweather. “Everything isgoodso Florida growers —istheever-present threat volume,” Sleepadds. in and to teachpeopleourproduct isavailable win. We putalotofmoneyinto thestores grew thatto 22millionby2007. It’s awin- declining sales. “We took 13millionflatsand berry industryin2003,afterseveral years of PRODUCE BUSINESS• DECEMBER 2008 The wildcard for allgrowers —especially started working withthestraw- FDACS FESTIVAL SUCCESS aNiña. La any weather patternssuchasElNiñoand the high-normalrange andnotsubjectto December, JanuaryandFebruary willbein Center (CPC),CampSprings, MD,predicts Administration (NOAA) ClimatePrediction firm enoughto shipanditfitsinto 1-pound produces afruitwithlotofmeatinside, it’s and amainreason yieldshave grown. “It mainstay ofgrowers for thepastsixyears The National OceanicAtmospheric Festival strawberries have beenthe the newvarieties inthepipeline, andwe eties to grow. “We’re excited aboutsomeof developed theirownproprietary vari- have which hasgrowing operations inDover, FL, based DriscollStrawberry Associates, Inc., well, othergrowers, suchasWatsonville, CA- much better.” longer becausethevarieties have gottenso lard, salesmanager. “Theseasonhasgotten further outofstate,” according to ShawnPol- berry anditholdsupsowe canshipthose of its2007-08 crop. “Festival isagood-tasting Plant City,FL,Festivals madeup70 percent Astin Strawberry Exchange, headquartered in Festival andplantitacross theregion. For what we hadseveral years ago.” states Hilton. “It’s very goodcompared to Festival, andthatiswhatwe are now using,” that have beenintroduced byUF, including the pastseveral years becauseofvarieties stand shippingto distant markets.” and hasafirmnessoftexture thatcanwith- region becauseitresists rain, tastes good changed theface oftheFloridastrawberry FL. “Itwould besafeto saythisvariety has Research andEducationCenter, Wimauma, University ofFlorida(UF)GulfCoast dler, PhD,professor ofhorticultural science, clamshell containers,” notesCraig K.Chan- C but it’s also about qualitycontrol.” but it’salsoabout foodsafety back system.It’snotonlyabout based onthetrace- makedecisions we can able continuousimprovement system,and useittofixtheerrors. It’saninvalu-we can it’sbad, is good,andontheoddoccasion goodjobwhenfeedback ers andgrowers totell the work- badandgood.It’sgreat — the systemtogainfeedbackfrom retailers accountability. We’ve abletouse also been qualitycontrol “It’sabout and picker. exact packedbacktothe trace every clamshell byimplementingasystemthat can scare Farms, quicklytothe reacted Plant City,FL, andyour businessisgone.” scare there’s—people justneedtobelieve a da tomatoes.“You don’tneedtohave facts salmonella Farm referring 4U,Plant tothe City,FL, I Lance Ham,presidentend ofus,”states of Although Festival hasdoneremarkably Other growers agree aboutthesuccessof “The industryhascomealongway in Gary Wishnatzki, president,Gary Wishnatzki, Wishnatzki Food Safety the tomato industry’s, it will be the the tomatoindustry’s,itwillbe like recall a ty issues.“Ifwehave onsumers are tuningintofood-safe- Ensuring scare mistakenly linkedtoFlori- mistakenly scare pb During every step along the journey from field to market, with our focus on the ultimate in food safety and product freshness, C & D’s personal touch provides quality assurance to our valued customers… …almost as if each berry is one of our children.

Growers • Packers • Shippers • Consolidators

From the tip of Southern Florida up to Michigan, C&D consistently provides the finest produce available year-round

Handling “North River” pole cukes, peppers, eggplant, plum and grape tomatoes, beans, strawberries and all southern vegetables.

800-899-9175 • 941-744-0505 • Fax: 941-747-8895 Tom, Steve, Dave, Frank, Sam and John Reader Service # 70 look forward to introducing them to our cus- tomers,” explains Valerie Sill, strawberry business manager.

RISING CONSUMPTION Discriminating consumers have noticed the quality of Florida berries. “My customers buy [based on] quality, and they appreciate the look and taste of Florida strawberries,” says David Lukens, produce manager, Akron’s West Point Market, a single-store operation in Akron OH. “They’re the type of people who drive 20 miles to this market. They’re looking for the best, and they buy quality not price.” Lukens looks forward to the winter season because he prefers the taste and texture of Florida strawberries. “When they’re in season, we use Florida berries in our gourmet deli for salads, in our bakery for cake fillings and toppings, and everywhere in our store.” Despite the recent economic downturn, growers are optimistic. “We’re looking forward to a good year. People are concerned about saving money and they’re staying home and eating,” says Hinton Farms’ Hinton. Consumers are becoming aware of the health benefits of strawberries and have added them to their diets, asserts Gary Wish- natzki, president, Wishnatzki Farms, Plant City, FL. “I think strawberries are a staple. Certainly their positive health benefits are important. Demand continues to grow even in the face of all the economic news. People are still eating strawberries.” Harvesting during the holiday season has been a boon to growers. “The harvest cycle is in sync with Christmas and New Year’s, and we have the supplies,” notes Astin’s Pol- lard. “Usually the best fruit of the season is at Christmas. It’s new crop fruit and some of the best we have. We ship to the East, North- east, Mid-Atlantic and Canada. We also have a lot of local demand in Florida.”

DEMAND FOR ORGANICS Consumers have been asking for organic strawberries. “We can’t keep up with demand,” explains Wishnatzki Farms’ Wish- natzki. “It’s hard to grow organic berries in Florida — the price would have to be too high. We’re trailblazers and it’s difficult, but we’re on board. We’re not ready to try that now, but there are those who see the market for organic berries growing and they’re look- ing to exploit the possibilities. We’re still learning and trying to figure out how to get 45

# our production numbers up. We’re not expanding because we need to perfect what we’re doing first, then we’ll expand rapidly.” If Florida growers can make convention- al strawberries an economically viable crop,

Reader Serv i ce perhaps organic strawberries are next. pb

66 PRODUCE BUSINESS • DECEMBER 2008 HEALTH INITIATIVES

Strategies to educate produce executives and their customers on health and nutrition benefits to drive consumption.

SPONSORS KIWIFRUIT ...... 68 sponsored by Cal-Harvest

SALAD ...... 70 sponsored by Dole Fresh Vegetables

VEGGIES...... 72 sponsored by Mann Packing Company, Inc.

STRAWBERRIES ...... 74 sponsored by Red Blossom

PINEAPPLES...... 76 sponsored by Turbana Corporation

DECEMBER 2008 • PRODUCE BUSINESS 67 HEALTH INITIATIVES KIWIFRUIT

Cal-Harvest Marketing, Inc. 8700 Fargo Ave., Hanford, CA 93230 Tel: 559-582-4000 Fax: 559-582-0683 : www.calharvest.com

Interview with John Fagundes, President, Cal-Harvest

Cal Harvest Marketing, Inc., a large senior citizens. Research has linked it to grower of kiwifruit, was formed in 1988 reducing the risk of age-related macular and is owned by Fagundes Agribusiness, degeneration, the leading cause of based in Hanford, CA. Cal Harvest markets irreversible blindness in older Americans. fresh fruit in North and South America and Kiwifruit also has a moderate-to-low the Pacific Rim. glycemic index of 52, making it a safe choice for those with Type 2 diabetes. Q: Can you point to the nutritional properties in your product that make it an Q: Are there simple, catchy phrases to essential part of a healthful diet? market the health benefits of your product? A: Kiwifruit, already on Dr. Steven A: Here are some messages developed Pratt’s elite list of SuperFoods, has been by Cal Harvest and the kiwifruit industry: found to be among the highest in Fuzzy Fruit — Fabulous Flavor, Power UP bio-availability compared to other with Kiwifruit — A Nutritional Superpower, anti-oxidant rich fruits and berries Kiwifruit — The New SuperFood, Green according to research at the USDA’s Kiwifruit — The Classic Original — A Super Arkansas Children’s Nutrition Center in Tropical-Sweet Sensation, Organic — 100% Little Rock. Dr. Ronald Prior and his team Super Natural Quality, Chewable Vitamins, also claim, “Learning that antioxidants Lean, Green Kiwifruit Machine. should be consumed with every meal, and if you routinely skip antioxidants in your Q: How does your product deliver a diet, over time, the excess number of free powerful punch of nutrition? Do studies NOW AVAILABLE IN radicals being produced may begin back up these claims? damaging cellular components, ultimately A: Many studies, available on the Cal CONVENTIONAL leading to atherosclerosis and cancer.” Harvest and industry Web sites, support the AND ORGANIC previously mentioned health claims. Green Q: What are the latest news flashes/sur- kiwifruit also works well as a natural through August, exports prises regarding health/nutrition benefits of digestive aid and may help relieve asthma kiwifruit to North America June through eating your product? symptoms in children. October and Italian kiwifruit comes in A: Bite for bite, kiwifruit contains more January through April. essential nutrients than 27 of the most Q: Since the FDA has strict guidelines popular fruits, as proven by a Rutgers on what health claims a company can Q: What are the best strategies to relay University study, making it one of the most make, what can be advertised or put on nutritional/health information to consumers nutrient-dense fruits in the world. your product’s labels ? on the retail floor? Recent research conducted by the A: FDA has approved the following A: Display: Display kiwifruit next University of Oslo in Norway reveals that nutrient content descriptors for kiwifruit: to other SuperFoods such as avocados, consuming two to three kiwifruit per day low-fat, saturated fat-free, sodium-free, blueberries, oranges, broccoli and can work to thin blood, reduce clotting cholesterol-free, high in fiber, high in pomegranates to form a “Power Aisle,” and and lower fat in the blood that can cause vitamin C, a good source of vitamin E display kiwifruit sliced and over-wrapped. blockage. In short, kiwifruit consumption and a good source of potassium. Point of Purchase/Signage: Signage has similar effects to the daily dosage of should promote the health and nutritional aspirin recommended by physicians to Q: What challenges do you face in benefits of kiwifruit. Make sure consumers improve heart health. getting the health message about your see placards showing the ease of cutting product to consumers and what solutions and scooping the fruit. It can also be eaten Q: Are there any notable health reasons can you offer? whole (skin included) once the fuzz is to target specific demographics or age A: Though kiwifruit has been readily rubbed off. groups with your product? available in North America for many years, Offer in-store demos: Most people will A: Kiwifruit is popular among children some consumers have never tried one. buy kiwifruit after sampling it. because of its small size, convenience, Efforts should always be made to get Sell in multiple pack styles and sizes: sweet taste and colorful appearance! And consumers to try the fruit and experience Give consumers a choice by placing bags because of its nutritional value and its unique taste year-round. California or multi-unit packages with bulk displays. year-round availability, moms love it, too. produces the most volume of fruit October Advertise: Sales increase as much as Kiwifruit is also popular among adults and through April, Chile offers fruit April three times when advertised.

68 PRODUCE BUSINESS • DECEMBER 2008 The “Cal King” label of kiwifruit represents one of the largest kiwifruit growers in California. This label is marketed by Cal Harvest Marketing, Inc., a family-owned farming and marketing organization that has been at the fore-front of the kiwifruit industry in California since the 1970’s. This kiwifruit has been grown, picked and packed with care and pride for over 30 years. The label is now available in both conventional and organic styles. Cal Harvest also markets kiwifruit from Chile and New Zealand to assure you have a high quality, year-round source of kiwifruit.

For information contact: Donna Fagundes • [email protected] • John Fagundes • [email protected] Phone: 559-582-4000 • Fax: 559-582-0683 • www.CalHarvest.com

Reader Service # 51 HEALTH INITIATIVES SALADS

Dole Foods One Dole Drive, Westlake Village, CA 91362-7300 Tel: 1-800-356-3111 Website: www.dole.com Interview with Jennifer Grossman, Vice President, Dole Nutrition Institute

Dole Food Company, Inc. is the world’s benefits. This is the concept behind our largest producer and marketer of fresh fruit Dole Superfoods campaign. Our scientists and vegetables. Chairman and owner looked at the body of medical literature David H. Murdock started the Dole Nutri- establishing health benefits for key nutri- tion Institute nearly six years ago to “feed ents and set out to see which foods con- the world with knowledge” through publi- tained them. The result is over eight Super- cations, Web sites, videos, articles, packag- food categories that promote health in ing and consumer outreach. The institute’s eyes, heart, brain, bones, etc. main mission is to educate the public Many of our salads qualify for multiple about the benefits of fruit and vegetable Superfood categories. For example, Dole consumption, while also providing nutri- Classic Romaine packaged salad qualifies as tion marketing, labeling and research sup- a Superfood for the eyes because it is an port for internal Dole divisions. excellent source of the vitamin A (90 per- lecithin, which helps promote healthy skin. cent) needed for proper eye functioning. It Celery is also hugely underrated. It is an Q: How can you distinguish your prod- also contains over 2,000 micrograms of excellent source of vitamin K and a good uct from the pack and all the competing lutein and zeaxanthin, which protect the source of folate, potassium and vitamin C. nutrition information as people focus more eye from the sun’s damaging rays. Diets rich Scientists from Case Western Reserve Uni- on the obesity epidemic? in these carotenoids and vitamin A, in the versity just found the celery phytonutrient A: Simply put, eating our products — form of beta carotene, are associated with a apigenin may slow prostate tumor growth. specifically salads — is the solution to the reduction in the risk of developing age-relat- obesity epidemic. Fruit and vegetables ed macular degeneration (AMD), the lead- Q: Are there any simple, catchy phrases have low-energy density, a fancy way of ing cause of blindness in the elderly. that could be used to market health benefits saying they have very few calories com- of your product? pared to other foods, pound for pound. Q: Are there any notable health reasons A: That’s what the Dole Superfoods Compare a pound of spinach (104 kcals) to to target specific demographics or age campaign is all about — we wanted the a pound of potato chips (2247 kcals) and groups with your product? message to be simple and concise enough you’ll see what we mean. Not only does A: Yes! Adolescents ages 14 to 18 are to put on a banana sticker or call out on a the spinach have fewer calories, but it also as a group falling down on key nutrients head of cauliflower. We can quickly and has a much higher water and fiber content, needed for development and health main- powerfully communicate that spinach is an which helps fill you up so you eat less of tenance. For example, 97 percent of ado- “Antioxidant Superfood” and provide a other, more fattening foods. Leading scien- lescents fail to get enough fiber — almost URL to drive consumers to a Web site to get tists are exploring the link between obesity all Dole Salads contain some fiber and more information, details about our label- and nutrition deficiencies. offer a convenient, healthful way to get ing criteria, recent studies and the like. A balanced meal with salad can nearly what you need. Harvard researchers found fulfill your requirements of several key middle-aged women who ate the most Q: Since the FDA has strict guidelines nutrients, providing a deeper sense of sati- leafy greens and/or cruciferous veggies on what health claims a company can ety and curbing the overeating cycle. boosted their odds of maintaining mental make, what can be advertised or put on Researchers have proven when you start sharpness in later years, and those who ate labels of your product packages? with salad, you consume fewer calories at least three servings of spinach and broc- A: Simple nutrient content claims can overall. Pennsylvania State University coli actually did better on cognitive tests be added to all our products letting con- researchers found women who began their than those who ate less. sumers know it’s not just a case of what’s meal with a salad ended up eating 100 NOT in the product — sugar, sodium, fat, fewer calories in total. Q: Are there any myths or confusing cholesterol etc. — but what IS in it — vita- nutrition information about your product mins and minerals. For example, Dole Q: Tell us something consumers may that you’d like to clear up? Field Greens packaged salad contains over not realize about how your product can A: A serving of iceberg lettuce actually 100 percent of vitamins K and A. Dole improve health and well-being. provides nearly a quarter of your daily packaged salads can also display FDA- A: While consumers may associate cer- needs for vitamin K, higher intakes of which approved health claims. For example, Dole tain nutrients with certain products — are linked to a 65 percent lower risk of frac- Baby Spinach and Radicchio can display spinach and vitamin A, for example — they tures among the elderly. It’s a decent source the following: “Diets containing foods that may not realize particular foods contain of the antioxidant quercetin, linked to lower are good sources of potassium and that are groups of nutrients at specified levels work- Alzheimer’s risk and a lower risk of catch- low in sodium may reduce the risk of high ing synergistically to deliver targeted health ing colds and viruses. It also supplies blood pressure and stroke.”

70 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 54 HEALTH INITIATIVES BROCCOLI

Mann Packing Company, Inc. 1250 Hansen Street, Salinas, CA 93901 Tel: 800/884-MANN(6266) Website: www.veggiesmadeeasy.com Interview with Gina Nucci, Director of Food Service Marketing, Mann Packing Company

Mann Packing Company, a pioneer in and stroke, and may be able to reverse the the fresh produce industry, introduced the risk of diabetes (BBC News, Aug. 5, 2008). first fresh-cut broccoli floret package in the 1980s and funded the first nutritional study Q: Are there any notable health reasons on broccoli. It is a leader in innovative to target specific demographics or age packaging and development of exciting groups with your product? new fresh-cut vegetable products. A: Broccoli can be especially beneficial The company was founded by H.W. for baby boomers because of its cancer- “Cy” Mann, a Stanford graduate who came fighting benefits. The Roswell Park Cancer to the Salinas Valley in search of employ- Institute in Buffalo, NY, recently discovered ment in the 1930s. Today it distributes more that three small servings of broccoli per than 35 fresh vegetable commodities under month can slash the risk of colon cancer by its Sunny Shores label as well as a variety of 40 percent. UCLA researchers discovered value-added retail and foodservice prod- eating broccoli can boost the immune sys- ucts, including Broccolini Sweet Baby Broc- tem and may even prevent some expected coli, Broccoli Wokly, Broccoli Cole Slaw, age-related declines in immunity. Stringless Sugar Snap Peas, Romaine Hearts, Simply Singles Whole Leaf Singles Q: Are there any myths or confusing and fresh-cut sweet potatoes. nutrition information about your product naturally low in carbs, good source of that you’d like to clear up? folate, good source of fiber, high in antioxi- Q: As America fights the obesity epi- A: Our broccoli products are full of dants, and preservative free. demic and other health problems, con- fiber. One medium spear has three times sumers are inundated with the nutritional more than a slice of wheat bran bread, Q: What challenges do you face getting values of just about everything. How can according to the USDA. your health message to consumers and you distinguish your product from the pack? what solutions can you suggest? A: We have America’s Vitamin Veg- Q: Can you come up with simple, A: We believe all consumers know veg- etable on each of our fresh-cut vegetable catchy phrases that could be used to market etables are healthful. They just don’t neces- products. We also highlight the nutrition health benefits of your product? sarily know all the easy, tasty ways to pre- information with a ‘nutrition deck’ or sum- A: We’ve already created a new slogan pare them. mary on the front of each package. and logo: For a Healthy Active Lifestyle. Www.veggiesmadeeasy.com, our Web We are also lucky in that we’re not the Because all vegetables are healthful for you, site, is full of creative recipe ideas about only ones advertising the health benefits of this communicates the ease of preparation how to add veggies to meals, from sweet broccoli. Everywhere we look, we see a along with the goal of having a balanced, potato hash to easy Asian stir fry. Streaming new study publicized about broccoli as healthful diet and lifestyle. videos teach just how easy it is! We believe super food. It’s hard to ignore a readily- if we follow through with our mission — available and affordable food that offers so Q: Can you point to studies backing up Fresh Veggies Made Easy — consumers will many health benefits. the nutritional claims of your product? keep buying our products because they A: John Hopkins is continuing to do improve their quality of life and health. Q: Tell us something consumers may studies on the phytochemical components not realize about how your product can in broccoli. its studies show a phytochemi- Q:What are the best strategies to relay improve their health and well-being. cal concentrate to reverse and prevent skin nutritional/health information to consumers A: An article published in The Buffalo cancers. The USDA nutrient database on the retail floor? (NY) News (Aug. 26, 2008) reports the reports broccoli is the richest source of vita- A: Providing healthful recipe and usage isothiacyanates (ITCs) in broccoli appear to min A in the produce section. Boiled broc- ideas is a good start. Consumers have a boost the body’s ability to fend off cancer coli has more vitamin C than an orange and renewed interest in cooking healthful, fla- and trigger cancer-cell death. Broccoli fights as much calcium as a glass of milk. vorful meals at home but some need guid- many cancers, including bladder, colon, ance on getting started. We can use a vari- breast and prostate cancers. Broccoli was Q: Since the FDA has strict guidelines ety of tools such as innovative displays, in- also found to improve immune system on what health claims a company can store magazines and weekly advertising cir- response and boost cardiovascular func- make, what can be advertised or put on culars, to cross-promote healthful products. tioning. Researchers from the University of labels of your product packages? In-store demos and wellness programs also Warwick in England report broccoli has A: Each product is different. A variety of reach shoppers. It’s important to make veg- been linked to a lower risk of heart attack our statements include high in vitamin C, gie consumption as easy as possible.

72 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 65 HEALTH INITIATIVES STRAWBERRIES

Red Blossom Sales, Inc. 162 Montgomery Avenue, Oxnard, CA 93030 Tel: 805-981-1839 Fax: 805-981-1842 Website: www.redblossom.com

Interview with Michelle Deleissegues, Director of Marketing, Red Blossom Sales, Inc.

Red Blossom Farms has over 1500 acres strawberries particularly appealing to those in California’s premier growing regions: groups with higher risk of heart health Baja California, Irvine, Oxnard, Santa issues, but strawberries are so diverse in Maria and Salinas/Watsonville. With straw- their nutritional benefits that they really berry consumption growing faster than any appeal to every demographic. other fruit in the produce department, Red Blossom is meeting this demand with a Q: Can you connect your product’s continuous supply of sweet, delicious, nutritional properties to health issues con- strawberries 11 months of the year. sumers can understand? A: Consumers are increasingly nutri- Q: How can you distinguish your prod- tional savvy so relaying strawberries’ wide uct from the pack and all the competing ranging benefits is key to providing con- nutrition information as people focus more sumers with the information they want. on the obesity epidemic? When they see AHA heart-check mark, demiological studies. The California Straw- A: Many dieticians consider strawberries they know a food meets AHA’s strict crite- berry Commission (CSC) is supporting stud- to be a Superfood because they are high in ria for low levels of total fat, saturated fat ies in esophageal and oral cancer in coop- nutrients and low in sugar. One serving of and cholesterol. The Produce for Better eration with the Ohio State University Can- strawberries — about eight strawberries — Health Foundation’s More Matters cam- cer Chemoprevention Program. provides more vitamin C than an orange. paign is another useful tool that is widely Research is ongoing to evaluate the Strawberries have significant fiber, potassi- recognized by the industry and public. impact of strawberry consumption on blood um and phytochemicals. Studies report peo- pressure, cholesterol levels and inflammato- ple who eat higher amounts of total fiber Q: How does your product deliver a ry markers that are drivers of heart disease. have a lower risk of heart disease. Potassium powerful punch of nutrition? Can you point Clinical studies are underway at the Univer- is important to balance electrolytes, aid to studies that back up these claims? sity of California, Los Angeles, University of muscle contractions and maintain healthy A: Strawberries are one of nature’s most California, Davis, the USDA Western blood pressure. Antioxidants (including vita- healthful “packages” of power nutrients. Human Nutrition Research Center and the min C) are key to warding off chronic dis- The completion of exciting new research University of Toronto. eases and promoting optimum health. should provide even more reasons to enjoy strawberries year-round. Nutrition scientists Q: Since the FDA has strict guidelines Q: What are the latest news flashes/sur- are looking beyond traditional vitamins on what health claims a company can prises regarding health/nutrition benefits of and minerals to understand the actions of make, what can be advertised or put on eating your product? hundreds of other compounds in plant your product’s labels ? A: In a recent study, strawberries ranked foods, as well as the protective power of A: We recommend saying strawberries second among the Top 10 fruits in antioxi- the whole foods themselves. have more vitamin C per serving than an dant capacity — one reason they may help Researchers at the USDA Human Nutri- orange; are naturally low in sugar — only prevent cancer and heart disease. They are tion Research Center on Aging at Tufts Uni- eight grams per serving ; rank second rich in phenolic compounds such as versity showed that strawberry extract among the Top 10 fruits in antioxidant flavonoids and ellagic acid, which are the slowed the age-related decline in cognitive capacity; and may help reduce the risk of focus of intense study due to their antioxi- function. The same research group is con- heart disease, fight some types of cancer dant, anti-cancer and anti-mutagenic prop- ducting new studies to determine the effect and lower blood pressure. erties. The majority of flavonoids in straw- of strawberry supplementation on behav- berries are anthocyanins, the compounds ioral aging,) the repair and regeneration of Q: What are the best strategies to relay responsible for the blue, red and purple nerve cells in aging and resistance to nutritional/health information to consumers hues of berries, grapes and other fruits. Cali- oxidative stress or inflammation. on the retail floor? fornia strawberries are now certified by the Strawberries contain a multitude of can- A: Retailers have a tremendous opportu- American Heart Association (AHA) and cer-fighting compounds, including vitamin nity to educate their customers and help may display its heart-check mark. C and folate, anthocyanins, quercetin, them make healthful choices. Giving pro- kaempferol and ellagic acid. Very few foods duce department employees special tips Q: Are there any notable health reasons or their compounds have been shown to about strawberries to share with customers to target specific demographics or age reduce risk of some cancers. However, can promote strawberries and develop a rap- groups with your product? strawberries and/or their constituents have port with customers. Nutritional POS signage A: The heart health benefits may make shown promise in both cell culture and epi- are also an effective educational tool.

74 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 75 HEALTH INITIATIVES PINEAPPLES

Turbana Corporation 550 Biltmore Way, Suite 730, Coral Gables, FL 33134 Tel: 1-800-TURBANA Interview with Alan Dolezal, Vice President of Sales, Turbana Company

Turbana Corporation is the North happy to be partnered with Disney Garden American marketing arm of C.I. Uniban and Imagination Farms for the purpose of S.A., the world’s largest banana producing implementing a program that will help our . In 2005, Fyffes obtained a 50 children to develop healthful eating habits percent ownership position in Turbana, that will continue through their teen years leading to Turbana’s current status as North and into adulthood. reducing risk of heart attack and stroke and American marketer of Fyffes Gold label heightening oral health. The high man- super sweet pineapples. Headquartered in Q: Are there any myths or confusing ganese and vitamin A content help prevent Dublin, Ireland, Fyffes is the largest pro- nutrition information about your product free-radical damage to the body’s cells. duce importer into the European Union, that you’d like to clear up? Free radicals are known to have a with annual sales of over $2.6 billion. A: One misconception about fresh cancer-causing role. pineapple is that it can be difficult to Q: As America fights the obesity prepare. Our Fyffes Gold Pineapple has Q: Since the FDA has strict guidelines epidemic and other health problems, preparation instructions on the back of the on what health claims a company can consumers are inundated about the tag, demonstrating how easy it is to cut a make, what can be advertised or put on nutritional values. How can you distinguish pineapple! We also offer a hand-held your product’s labels? your product from the pack? Easy-Slicer corer. Additionally, many A: Our pineapples are not packaged A: Fyffes Gold Pineapples are healthful retailers core our Fyffes Gold Pineapple and the tag is the only place for some nar- and taste great! They’re extremely high in and offer both whole and pre-cut fruit in rative, so they don’t make ideal billboards. vitamin C and low in calories and contain their produce departments. We work with our retail partners to formu- virtually zero sodium or fat. Regarding Another misconception is that pineap- late and execute health-oriented advertis- obesity, and in particular childhood ples are seasonal; Fyffes Gold Pineapple ing and promotions through store circulars, obesity, Turbana is very proud Disney tastes the same and contains the same seasonal promotions emphasizing health Garden has named Fyffes Gold as its dietary attributes 52 weeks a year. The and fitness and in-store promos using pineapple of choice in the new shell color of the fruit may vary slightly customized POS materials that support Disney/Imagination Farms campaign aimed from time to time, but the consumer taste health- and nutrition-oriented themes. at increasing the consumption of fresh experience and the nutritional benefits fruits and vegetables among children. inherent to the fruit will not. Q: What challenges do you face in On a lighter note, we also think Fyffes getting the health message about your Gold Pineapples contribute to positive Q: Can you connect your product’s product to consumers and what solutions mental health. Pineapples have always had nutritional properties to health issues do you have in mind? an exotic image conjuring up thoughts of consumers can understand? Can you come A: In the age of instant information, tropical locales and warm, sandy beaches up with simple, catchy phrases that could it’s easy for consumers to feel awash in a — the kind of images to put a smile on market the health benefits of your product? sea of conflicting claims and health one’s face, especially in winter. A: The More Matters campaign and the messages. The key is to provide informa- Produce For Better Health Foundation tion from credible, certified sources (PBH, Q: Tell us something consumers may (PBH) are great sources for consumers to AMA) and present this information clearly not realize about how your product can learn about the benefits of fresh pineapple and concisely. improve their health and well-being? relative to various health issues. A: People may not realize fresh pineap- Our Fyffe Times Better slogan addresses Q: What are the best strategies to relay ple’s status as an anti-inflammatory agent five common health issues, since our nutritional/health information to consumers and its ability to boost oral health. Pineap- pineapple is an anti-cancer agent, on the retail floor? ple contains bromelain, a protein-digesting enhancer of the body’s immune systems, A: Pineapples can be highlighted as enzyme that helps suppress and counteract natural anti-inflammatory agent, proven aid both a healthful cooking ingredient and inflammation. Pineapple is also extremely to achieving good oral health and inhibitor a nutritious snack. The display and the high in vitamin C, a high intake of which of strokes and heart attacks. message should achieve maximum visual greatly reduces the risk of gum disease. impact. Q: How does your product deliver a A unique for our message is Q: Are there any notable health reasons powerful punch of nutrition? the Disney Garden/Imagination Farms pro- to target specific demographics or age A: A daily slice or two of our pineapple gram. We can help affect a real paradigm groups with your product? provides half the recommended daily shift in the way children, and the American A: Childhood obesity is a major intake of vitamin C, the benefits of which family in general, perceive and consume concern in our society, and Turbana is very include strengthening the immune system, fresh fruits, obviously including pineapple.

76 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 63 Reader Service # 49 BOSTON MARKET PROFILE Boston Carries On Despite a slow economy, business is bustling at Boston’s produce market.

By Jacqueline Ross Lieberman

t’s a cool morning in autumn and everyone at the produce mar- economic meltdown, it’s brisk business as usual for the guys in pro- ket outside of Boston is checking their Blackberries for the latest duce. Mostly. economic news — not that they really want to know. Stocks are “Things are just steady-go,” says Lou D’Alleva, president, Garden down. Stocks are up. Now they’re back down. All week long, it’s Fresh Salad Co., Inc., Chelsea, MA. “The economy doesn’t call for one crisis after another, with the new bailout plan making only many changes. You keep doing what you do best and you just go.” theI slightest dent in the chaos. And the problem is no longer just in Susan Tavilla, sales/administration, P. Tavilla Co., Inc., Chelsea, America — it’s everywhere. The world seems to be sliding toward eco- MA, agrees. “We’ve had more complaints about the pricing, but busi- nomic doom. Somewhere else, business people are wringing their ness is pretty steady,” she tells us. hands. Here, they’re all smiles. Much of that has to do with the nature of the produce business. The market that serves Boston and the outlying area is actually two “We’re not as cyclical as some other industries,” says Ken Cavallaro, markets side-by-side — the New England Produce Terminal in treasurer, John Cerasuolo Co., Chelsea, MA. “People are interested in Chelsea, MA, and on the other side of the city line, the Boston Market top-quality, good produce. When you have that, it always seems to Terminal in Everett, MA — with a few additional wholesalers immedi- find its way out the door.” ately nearby. But folks here give you the impression that it’s one big But not everyone is so assured. “I think the economy is affecting market and, often, one big family. Today, despite the constant talk of the business a little bit more thank people think,” notes Steven ,

DECEMBER 2008 • PRODUCE BUSINESS 79 BOSTON MARKET PROFILE

John Finn Dave Patnaude Sean Murdock Anthony Sharrino Joe Gelardi David Piazza Coast-To-Coast Produce Coast-To-Coast Produce Coast-To-Coast Produce Eaton & Eustis Community-Suffolk Community-Suffolk

president, Arthur G. Silk, Inc., Chelsea, MA. Corp., Chelsea, MA. sprouts,” agrees Butch Fabio, treasurer, J. “People are definitely cutting back and chang- Bonafede Co., Inc., Chelsea, MA, wholesalers ing their spending habits, including expensive Comfort Food Selling Best specializing in tropicals. “Staples such as produce. People aren’t spending as much at Depending on whom you ask, pricier items, bananas and potatoes actually do better.” supermarkets. People can buy frozen vegeta- such as strawberries, exotic fruit and some But Travers disagrees. “Berries right now bles — they don’t have to buy fresh. In gener- organics, are beginning to suffer. On the other are on the desirable side,” he says. “The whole al, produce prices haven’t gone up that much, hand, basic items are moving right along. industry is hurting from the economy. It’s not but there are other options. That’s great news for businesses such as just one item. People are worried about just Mario Cutone, president, M. Cutone Community-Suffolk, Inc., Everett, MA, which filling up the gas tank.” Mushroom Co., Inc., Chelsea, MA, is similarly carries staples such as carrots, cabbage, pota- Some exotic items have a loyal following cautious. “People say, ‘You still have to eat.’ toes, onions, celery, lettuce, onions and of immigrants who depend on foods from But, you know, that’s the first place they cut lemons. “We pretty much stay true to our sta- their home countries. But, notes Fabio, “If back,” he says. ple items unless we can get them at a really those people start losing their jobs, they may Compared to the price of other staples, good value for our customers,” says Steven be affected.” such as dairy, meat and bread, the cost of Piazza, president. Organic items with only a small difference produce has risen only slightly during the “Potatoes are moving,” adds Tom Piazza, in price from their conventional cousins past year, due mostly to the higher price of Community-Suffolk co-owner and potato guy, remain in demand. At J. Bonafede, sales are fuel and petroleum-based fertilizer as well as who notes the potato harvest was big this year. organic bananas are “pretty steady,” reports fluctuations in the market. “The price of pro- “It fills your belly. It’s not all that expensive. Gene Fabio, president. duce really never goes up,” according to It’s comfort food. I’ve noticed that it hasn’t Still, some consumers are willing to pay for Cutone. “Thirty years ago you could buy let- been all that brisk for other items, business- organics no matter what the price difference. tuce for $2, $3 a box. You can still buy it for wise, but potatoes are holding their own.” “There are a wide variety of people choosing that today.” Pricier items are starting to feel the pinch. organics,” shares Jack Ford, president, New But these merchants, who still have to keep “Items I call ‘pizzazz’ items — higher priced England Organics, Chelsea, MA. “A lot of it is prices down for their customers if they want items you don’t need to have — are suffering families with children.” Many of Ford’s cus- to compete, feel any increase in cost. “There’s versus staple items,” says Dave Patnaude, tomers are health-food stores and individuals no margin for error. Expenses are high and manager, Coast-to-Coast Produce, Boston, with severe illnesses who buy in bulk, looking you’ve got to move a lot of merchandise,” MA, a multifaceted supplier that grows, bro- to organic produce for health benefits. “The explains Anthony Sharrino, president, Eaton kers, distributes and runs third-party logistics. chain stores shy away because of pricing, but & Eustis Co., Chelsea, MA. “This year I saw a decline in melon consump- our customers understand.” And what about the theory that the pro- tion. But what’s increased is watermelon ver- Overall, despite the price difference, organ- duce business is recession-proof? “It is, to a sus cantaloupe because it’s cheaper.” ic produce consumption remains a growing certain point. [But] things slow down,” “I suspect the more exotic items will see a trend, according to Kevin DeMichaelis, sales reports Paul Travers, sales, Mutual Produce drop — things such as asparagus, Brussels and a principal owner, State Garden, Inc.,

FOOD SAFETY IN THE SPOTLIGHT n light of recent food scares, “The big issue today is food tomers from any potential damaging occurrences,” says safety,” says Anthony Sharrino, president, Eaton & Eustis Kevin Maher, president. ICo., Chelsea, MA. “I think that, at the terminal market, we Peter Condakes Company, Inc., is also third-party audited have it well under control.” for food safety, by AIB and Primus Labs. “The fact that I’m Some companies are taking food safety a step further to certified has not turned out to be an advantage with cus- ensure the food they produce is safe to eat. For instance, tomers walking the market,” according to Peter John Con- Chelsea, MA-based Coosemans Boston, Inc., which is hazard dakes, president. However, “If you aren’t third-party audited, analysis and critical control point (HACCP) certified by Sci- there are customers you can’t even attempt to sell to.” entific Certification Systems. “Certification gives us a better “When we’re looking for new business we try to have a feeling that we’re doing everything possible to ensure all the little bit extra to offer,” says Ed Davol, food safety and securi- product we sell is safe and that, God forbid something does ty manager, Peter Condakes. In addition to safety, security is go wrong in the food chain, we have the tools at hand to be taken into account. “We make sure we’re meeting all the able to recall whatever it is immediately and protect our cus- requirements for the bioterrorism acts, too.” pb

80 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 23 BOSTON MARKET PROFILE

Tom Piazza Tom Piazza Marco Imbergamo Stephen Silk Peter Renda Skip Cavallaro Community-Suffolk, Inc. Community-Suffolk, Inc. Arthur G. Silk, Inc. Arthur G. Silk, Inc. Arthur G. Silk, Inc. John Cerasuolo Co., Inc.

Chelsea, MA, which includes the Olivia’s fede’s Gene Fabio. Margins for these items are miles from Nogales to Boston.” Organics line. smaller than in the past. “The cost of mangos Although the price of diesel has dropped isn’t that high, but the cost of transporting in recent days, it still remains high compared Fuel Takes its Toll mangos has more than doubled in a couple to years past and many here fear prices will Produce shipped from many states away is of years,” he explains. When he does raise rise again. “We’re at the plateau of oil produc- suffering somewhat. “With this economy, prices, “Everyone wants to know why I’m tion in the world and it’s going to start going we’re seeing a decline in the volume of orders charging so much more money. I tell them, down,” says Murdoch. “Our gas prices never as well as the number of trucks,” according to ‘It’s not me.’” really got that high compared to the rest of Coast-to-Coast’s Patnaude. “They’re looking Sean Murdoch, sales, Coast-to-Coast Pro- the world.” for more local freight now because fuel is so duce, believes Boston customers will choose Others are more optimistic. “Gas is going high. We’re getting fewer opportunities to sell regional produce over produce from afar if down a little bit and I think it will come down our services.” [Editor’s note: These interviews were fuel prices rise again. “I think you’ll see a little more,” according to Ford of New Eng- done prior to November’s steep price drop-off.] growth in products coming out of Georgia or land Organics. The price of organic produce from the Florida, because freight is cheaper. But it Until then, margins are tight all around. West Coast “is going up with the cost of depends on the price.” He explains produce is When the price of fuel is high, “You really freight from California. Everything is going up often less expensive from areas such as Cali- don’t pass the whole increase on to your cus- except people’s pay,” notes Ford. fornia where the climate and soil are better tomer,” relates Jim Ruma, president, Ruma Imports are suffering, as well. “Fuel costs suited to growing. “Nogales [AZ] will be a big Fruit & Produce Co., Everett, MA. “You try to have had a bit of an impact,” reports Bona- factor this year,” he predicts. “It’s only 2,700 recover some of it.” Reader Serv i ce # 20 Reader Serv i ce # 1 3

82 PRODUCE BUSINESS • DECEMBER 2008 BOSTON MARKET PROFILE

GIVING BACK livia’s Organics, part of State Garden, Inc., Chelsea, MA, was created with the community in mind. “We are a third-generation company,” O says Kevin DeMichaelis, a principal owner and salesman for State Gar- den. “Our dad sat us down a few years ago and said, ‘We’ve been in business 70 years now. I want to come up with a brand that gives back to the community that’s given to us all these years.’” Olivia’s Organics does that. Through the Olivia’s Organics Charitable Foun- dation, the company uses a percentage from each sale of its organic salads, cel- ery and seasonal items to help organizations such as the Make-a-Wish Founda- Terry Bell and Chris Rhodes, Community-Suffolk, Inc. tion, Marine Corps Toys For Tots, Cam Neely Foundation for Cancer Care, The Joslin Diabetes Center and America’s Second Harvest Kids Café. Arthur G. Silk, Inc. “This is something that our family is very proud of. It’s been very fun and very fulfilling,” says DeMichaelis. His employees like it, too. “I know it makes them Retail’s Up, feel that they’re a part of something, that they can give back and help people. Foodservice Suffers And it makes me feel happy that our employees are feeling that way.” pb There is no question retail stores are selling more produce in Boston while foodservice is taking a hit. And wholesalers such as New England ing months ahead,” adds Murdoch. “A lot of the sales are down on the high- Organics that offer delivery service to local To save money, some wholesalers are look- end restaurants,” notices Kevin Maher, presi- stores find themselves feeling even more pain ing to get their produce by rail. As a result, dent, Coosemans Boston, Inc, Chelsea, MA, at the pump. “Railex is keeping the price on the trucking which offers specialty produce to both food- Meanwhile, a drop in the price of gas could more competitive,” notes Mutual’s Travers. service and retail customers. “Usually we get a actually hurt some trucking companies that Merchants here are forced to be as efficient full dock in here on a Monday morning. These were counting on a fuel surcharge to make as possible in other ways, as well. “With the days you can pull in anytime you want. But we ends meet. “It’s going to hurt people who are gas going up, we’re more conscious of keeping still open the door every day and people are contracted. Some companies want their pric- costs down,” says Marco Imbergamo, sales, still flowing in.” Reader Serv i ce # 15

DECEMBER 2008 • PRODUCE BUSINESS 83 BOSTON MARKET PROFILE

Angelo Melito Stephen Dole Al Beausang Sheldon Borodkin Patrick Burke Lou D’Alleva John Cerasuolo Co., Inc. P. Tavilla Co., Inc. P. Tavilla Co, Inc. Costa Fruit & Produce Garden Fresh Salad Co. Garden Fresh Salad Co.

Remembering the slump after Sept. 11, va of Garden Fresh, which specializes in more diverse population. In Boston, they’re all 2001, Maher says this is not the worst business processed produce. fussy customers,” says Sharrino of Eaton & he’s seen. “It’s just the cycle. We’re looking for- “It saves them on labor, from hiring an Eustis Co. ward to next year and building our sales.” In extra employee,” explains Patrick Burke, sales, For example, “Bigger size lemons do well the meantime, “We’re going to have to offer Garden Fresh. It also cuts back on guesswork in Boston. Smaller lemons are a tough sell some reasonably priced items to customers and waste. “It’s a consistent product with a here,” says Jackie Piazza. and make less margin. We have to take in consistent cut,” he says. Burke of Garden Fresh, agrees. “In general, more items that are more mainstream than we The most efficient foodservice operators the buyers tend to be very selective about what usually do. We have to keep those trucks full cut costs by paying attention to fluctuations in they buy. They want only the best.” so the freight is manageable.” prices, substituting a similar item based on the “We’re the toughest market on quality. Some foodservice suppliers are riding out current market. For instance, “When lemons Product that will work in other markets won’t the economic downturn just fine. “Our food- were $60 a box and limes were $12, they work here,” notes Peter John Condakes, presi- service is up a little bit,” reports Steven Piazza switched to limes,” says Jackie Piazza, citrus dent, Peter Condakes Co., Inc., based in of Community-Suffolk. “That’s based on good sales, Community-Suffolk. Everett, MA. “If product that’s not perfect business. The new immigrants with indepen- comes here, you have to sell it for an extreme- dent restaurants buy the raw product and do What Boston Wants ly discounted price.” everything themselves.” Boston is a smaller city than New York or It was not always that way, according to At the same time, larger foodservice opera- Los Angeles, and as a result the merchants Sharrino. Years ago, more produce managers tions continue to use fresh-cut produce. “Food- here have fewer chances to move less-than- in the area took the time and effort to sell less- service is still pretty steady for us,” says D’Alle- perfect produce. “In New York. you’ve got a far than-perfect items. Today, “They want to put it Reader Serv i ce # 14 Reader Serv i ce # 22

84 PRODUCE BUSINESS • DECEMBER 2008 BOSTON MARKET PROFILE

Brands are also important to many. “I keep Immigrants from around the world have a continuity of labels,” notes Sharrino. “In the made Boston home, and Bonafede offers the stores, produce is pretty generic, but to the produce they are familiar with. “We have a buyers on the market, brands are important.” large Southeast Asian crowd, we have the His- Specialties play an important role, espe- panics and Central Americans,” he adds. cially at the independently owned neighbor- The Asian community often uses pomelos, hood stores that cater to immigrant commu- according to Jackie Piazza of Community-Suf- nities. “We have a diverse customer base folk. “Two or three years ago, we were doing because we have so many exotic items,” says very few pomelos. Now pomelos are a factor.” Bonafede’s Gene Fabio. “We get a lot of small, By volume, the biggest specialty items at Butch Fabio and Gene Fabio local ethnic stores that come in and get it as Peter Condakes Co. are “mangos, limes, green- J. Bonafede Co., Inc they need it.” skinned Florida avocados, papayas, plantains,

Ronny Dugas and Mike Patalano Community-Suffolk

Yanni Alphas and Brian Scolaro The Alphas Company

Maurice Crafts and Doug Gordon Coosemans Boston out there and not deal with it. They’ve got less patience, maybe. Product is at the mercy of the retail worker.” “Quality, service and price — those are your keys. I think quality comes first,” says Ruma of Ruma Fruit. But although quality is key here, price is the most important factor for many customers who walk the market. “If the box has a lower price, greater shrink doesn’t even figure in,”

observes Condakes. Reader Serv i ce # 3 5

DECEMBER 2008 • PRODUCE BUSINESS 85 BOSTON MARKET PROFILE

Spanish root vegetables and Southeast Asian Those always do well for us. We’ve been bring- vegetables and fruits,” reveals Stephen Con- ing in some blood oranges and Meyer lemons dakes, vice president. “And we have an Indian from Australia. That gets people ready for population. They use an Indian bitter melon when they come out of California at the end called karela, long squash, Chinese okra, tin- of November.” In addition to retailers, “A lot dora — a mini cuke — snake gourd, green of restaurants use blood oranges. They love Thai chile peppers, Chinese eggplant and Indi- the color of the juice.” an eggplant.” And, adds Jackie Piazza of Community- For the ethnic specialty trade, “Everything is Suffolk, “Meyer lemons are becoming much price sensitive. Because many of these products more prevalent. More people are finding out come from far away and they tend to be more about them.” delicate than regular produce and they’re not Of the vegetables, “We do baby beets, mul- grown on as grand a scale, the markets on ticolored peeled baby carrots,” adds Maher. “A them are highly volatile,” he continues. “Even lot of the oriental baby vegetables are in though I would love to have a steady price demand with retailers. We get peeled lotus structure on these products, it’s not always pos- root that comes in a Cryovac bag from China. sible. They just won’t have it in the store if they Restaurants that have an Asian theme use can’t sell it for at least minimal profit. They’ll them.” Microvegetables grown on Long Island say, ‘We just don’t have it this week.’” are a special item at Coosemans and chefs Specialties are important to other seg- love them. “They like the unique flavors they ments, as well, including foodservice. Coose- bring and the color,” says Maher. mans carries high-end specialty produce, such In the spring, Ruma Fruit does big business as “baby vegetables from all over the world, with fiddlehead ferns, in demand with retail things that are out of season such as mixed and foodservice customers during their melons coming out of Mexico,” says Maher. extremely short season, according to Ruma. “We just started with the first pomelos of the “We probably had a 20 percent increase in season from California. Baby Brussels sprouts sales this spring.” from the Netherlands are just coming up. Cutone of M. Cutone, sells wine grapes and 6 18 #3 # Reader Serv i ce Reader Serv i ce

86 PRODUCE BUSINESS • DECEMBER 2008 BOSTON MARKET PROFILE

Richard Travers and Paul Travers Kara Cavallaro and Dominic Cavallaro III Junior Parton and Susan Tavilla Mutual Produce Corp. John Cerasuolo, Inc. P. Tavilla Co., Inc. wine grape juice during the fall to a growing “All the spring mix salads are popular In some segments, sales of processed pro- number of amateur winemakers, as what used here,” says DeMichaelis of State Garden. duce continue to climb, as well. Garden Fresh to be a pastime for Italian and Portuguese Although baby spinach is popular for salads, has been in the business of processing pro- immigrants in the area has turned into a “There’s still a big calling for Savoy spinach in duce since 1970. “It’s a good 70 percent of hobby for a growing number of enthusiasts. the Northeast because it’s a cooking spinach what we do here,” says D’Alleva. “We sell to doctors, bankers, lawyers,” says and this is a cold climate.” Despite customers and consumers cutting Cutone. “There are a lot of people getting into Many once seasonal, hard-to-find special- back on costs by doing more themselves, the that now. It’s exciting for people.” ties are now available in Boston year-round. popularity of fresh-cuts has not waned. In Burke of Garden Fresh reports sales of “There was a time when mango season ended. some cases, processed produce can actually herbs have increased over the past few years. Now, because you source everything all over save users money in labor costs and waste, “Fancier restaurants, higher-end restaurants, the world, there never is a break,” notes Bona- says Patricia Hurney, sales, Garden Fresh. even consumers with the advent of Food TV fede’s Butch Fabio. “Because there’s so much Items such as peeled cippoline onions are — they’ve been more creative with what they coming in off-season, the prices are lower and in demand for foodservice, according to cook. Our most popular herbs are basil, rose- people can afford them.” And so demand Coosemans’ Maher. “That onion is pretty diffi- mary and thyme.” continues to grow. cult to peel. It’s pretty labor-intensive, so they Reader Serv i ce # 19 Reader Serv i ce # 58

DECEMBER 2008 • PRODUCE BUSINESS 87 BOSTON MARKET PROFILE

Kevin Maher Pat Lynch Kevin DeMichaelis John Bonafede Jack Ford Jackie Piazza Coosemans Boston State Garden, Inc. State Garden, Inc. J. Bonafede Co., Inc. New England Organics, Inc. Community-Suffolk, Inc.

like them peeled.” times survive and thrive. “It just evolves,” says tition boast another advantage during the cur- At the retail level, processed produce is still Cavallaro of John Cerasuolo Co., a company rent credit crunch. “I don’t think will be as desirable for its convenience. For example, “A that has been in business for about 100 years. affected a lot of the ethnic trade because they lot of people buy more sliced mushrooms in “Your customer base may change.” work on a cash basis — they don’t have a an 8-ounce package now,” says Cutone of “You keep adjusting. It’s all you can do,” credit problem,” says Gene Fabio. M. Cutone Mushroom Co. agrees Travers. Meanwhile, the number of wholesale busi- While many report business from super- nesses here continues to shrink while a few Bigger Players, Smaller Field market chains remains steady, some have companies grow. Often, houses that started “The industry has changed. It’s consolidat- noticed a decline in sales over the years. Some with one or two items grew and now carry a ed. There are fewer customers,” notes Mutual’s are coming to the market less often for fill-ins. full line of produce. John Cerasuolo is one of Travers, who believes the consolidation of “The chains have started getting better at esti- those companies. According Skip Cavallaro, chain supermarkets over the past 15 years has mating their needs,” according to Bonafede’s president, the full-service wholesale company hurt the wholesale market. Gene Fabio. was started 83 years ago when it sold all local- “You see fewer independents,” agrees But the chains would be smart to utilize ly grown produce. “As the years went by, every- Ruma of Ruma Fruit, which specializes in fill- the market, says Jackie Piazza of Community- one started selling the same stuff. Everyone’s ins for chain supermarkets. “You don’t see too Suffolk. “Retailers can come in and load 10 got everything now,” he says. many single stores or small chains as in previ- trucks in three hours and get great deals.” To stand out, companies must offer top- ous years.” Independent stores that rely on the market notch service. “It’s very competitive,” he notes. Wholesalers that can change with the for deals to give them an edge over the compe- “That’s why you look to satisfy your customer Reader Serv i ce # 56 Reader Serv i ce # 67

88 PRODUCE BUSINESS • DECEMBER 2008 BOSTON MARKET PROFILE

Stephen Condakes Ed Davol Kenny Natorelli Peter John Condakes Peter Condakes Co., Inc. Peter Condakes Co., Inc. Baby Nat’s Peter Condakes Co., Inc. needs as much as you can.” tionships,” says Bonafede’s Gene Fabio. “You Mutual’s Travers believes, “Our difference don’t shop at a place you don’t like.” is we try to have good customer service and Skip Cavallaro will often go the extra mile high quality.” to keep customers happy. If buyers need an “To really keep things going well, you need item he doesn’t have, he says, “We tell them to offer service,” agrees D’Alleva of Garden we’ve got it.” And then he gets it. Mario Cutone and Butch Cutone Fresh, which often works with foodservice to Susan Tavilla of P. Tavilla Co. has cus- M. Cutone Mushroom Co. customize products. “They’ll come up with tomers who buy from her daily. “They say, their own blends and we’ll do it their way.” ‘You don’t realize how much I appreciate that When it comes to shippers, relationships Much of today’s sales take place over the you know how much and what I need every are vital, agrees Skip Cavallaro. “If you don’t phone, with customers trusting wholesalers to day,’” she relates. Businesses such as hers rely get the right product at the right price, you get them the best produce at the best price on that kind of relationship. can’t be competitive and you can’t sell to any- sight-unseen. “Everybody’s busy today. “We try to have good relationships with body,” he says. Nobody’s got any time,” explains Cavallaro. suppliers, too. Without product, we’re out of “Our continued commitment to our ship- Nevertheless, “There are still people walk- business,” says Butch Fabio. pers and our customers — the reciprocal ing this market. A lot of them still come down “You’ve got to get the right deals behind arrangement has kept us on the forefront with and buy every day,” notes Maurice Crafts, you,” reports Angelo Melito, sales, John Cera- potatoes on the market,” says Tom Piazza of sales, Coosemans. suolo. “There’s a lot of competition. Only Community-Suffolk. “We sympathize with “This business is based on personal rela- people with the right deals survive.” both of them. We’re all in it together.” Reader Serv i ce # 17

DECEMBER 2008 • PRODUCE BUSINESS 89 How A Handful of Women Are Changing The Market

n a time when women are serious contenders for the President-elect’s Icabinet of the United States, it may come as a surprise how much men still dominate the Boston produce market. “You know, there are very few of us women down here. It really hasn’t Maureen Hurney Patricia Hurney changed much,” says Maureen Hurney, Garden Fresh Salad Co. Garden Fresh Salad Co. sales, Garden Fresh Salad Co., Inc., Chelsea, MA. She and sister Patricia Hur- ously sold, such as artichokes and anise. ney, also in sales, came to the company “A couple of people gave me the after years of retail experience, something shot,” she adds. “Some of the buyers, it that is also still very much a man’s world. took a long time, but the ones that did Twenty-seven years ago, when Patricia stuck with me.” Hurney first became a produce manager Before coming to the market, Tavilla for a supermarket that was part of a was in management and, like Patri- chain, “We had 47 stores and no women cia Hurney and Maureen Hurney in their produce managers,” she remembers. But previous careers, she was one woman in a she was not deterred. “It was the second- sea of male colleagues. The experience highest paying job in the store and I taught her, “In a man’s world, I have to wanted the paycheck. work harder to get respect,” explains “I enjoyed produce. It was interesting Tavilla. “I try harder because I’m a and I liked the work,” she notes. Garden woman. I’m here at 1:00 AM every night. Reader Serv i ce # 5 Fresh took notice of her business savvy Most lettuce salesmen are in at 3:00, 3:30. when she came to buy for the store and I try harder because I feel I have to do the soon hired her. Not everyone at the mar- best so I can be thought of in that light.” ket was ready for a woman in sales. Carol Dixey, who drove trucks for “Here they were, in shock. They didn’t Garden Fresh for four years and for eight know what to do with me,” she recalls. A years on the market before that, certainly woman’s presence changed the work- knows what it is like to do a “man’s” job. place dynamic. She remembers how It can be hard, at times, “For the simple some of the men were afraid to swear in fact that a lot of people are all old-school front of her. still,” she relates. Like other women on That was 25 years ago. Six years ago, the market, she has had to take extra even after those at the market had adjust- steps to prove herself in the industry — ed to Patricia Hurney, Maureen Hurney once she was told to take a driving test came aboard after a career in the deli the men were allowed to skip. Still, she business and received a similar response. tells us, it’s good work that allows her to “They thought I wouldn’t last a week,” support herself and her children, and she she laughs. “It’s a men’s club down here. enjoys the challenge. But I think the whole market in general is Tavilla, whose family has been in the changing. It’s more service-oriented,” she business since the 1920s, feels selling says — i.e., less cursing. “It’s becoming produce was a natural fit for her, but not more tolerant. If they see you can do the everyone saw it that way. “My grandfa- job, nobody hassles you.” ther said this was not a business for girls,” The women at Boston’s produce mar- she reveals. When she was 17, she ket have had to prove themselves. Susan earned money for school as a bookkeeper Tavilla, sales/administration, P. Tavilla for the company under her uncle, but as Co., Inc., Chelsea, MA, did just that. soon as she graduated she was expected When she started working at her family’s to go someplace else. “It wasn’t like I had company seven years ago, “I was loading a job here,” she says. two half-loads a week,” she says. “My Years later, she came to help her broth- customer base got to where I added a er for what she thought would be six truck, and added a truck. . . ” She also months. “The first day here, I knew I added items the company had not previ- wouldn’t leave. I remembered so much

90 PRODUCE BUSINESS • DECEMBER 2008 BOSTON MARKET PROFILE

In some cases, wholesalers will work with ship they maintain with each other. Perhaps it the same shipper throughout their career. is because Boston’s wholesale market is Hurney of Garden Fresh has worked with smaller than that in some cities, but folks some of the same shippers for the entire 25 here seem to feel more like family. “I think years she has been with the company. it’s friendlier than other markets. Everyone “This business now is about people,” says looks out for each other. Everyone knows Sharrino of Eaton & Eustis. “It’s relationships. each other,” says Imbergamo of Arthur G. That’s why you always see the same labels in Silk. “There’s still competition, but it’s friend- my place year after year.” ly competition.” What may be unique to wholesalers on At this wholesale market, “It’s nothing but this market is not only the relationship with hard work, but it’s a good place to be,” con- shippers and customers but also the friend- cludes Mutual’s Travers. pb

Susan Tavilla Carol Dixey P. Tavilla Co., Inc Garden Fresh Salad Co. from 23 years before. It’s in your blood. It’s from listening to my dad on the phone. It’s from being around it all your life. You have to love it. I love it. I love all the different people I get to see every day. I love the challenge. There’s a lot of vari- ables each day. It’s always different.” For Tavilla, the rewards outweigh the difficulties. “It’s kind of cool how on Fri- day you’re out of stuff because you know what you’re doing,” she says. “Today, I sold four pallets of artichokes on a dead market. It’s a great feeling at the end of the day when you’ve sold a lot of stuff and made more money for the company and helped your customers.” Patricia Hurney agrees the challenges and rewards of the produce business are worth the hassle. “I loved the market from the day I walked in here — the excitement. It changes every day. I’m always learning something new. When you’re downstairs selling, it’s a live prod- uct. You sell it or you eat it.” Today, the men of Boston’s market are beginning to take women in produce seri- ously. “A lot of eyes have been opened here,” she explains. Women even have a few advantages. “My customers are still basically all men. Female chefs, maybe. But more of my suppliers are female.” And some of those women are happy to hear another female voice on the line. And while some still bristle at a woman in sales, “A lot of the guys do like to talk to a female.” “Being a woman in this business, the challenge that it brings gives me even more joy when I do well because there aren’t many women doing this,” accord- ing to Tavilla. Patricia Hurney offers this advice to women who want to be in produce: “Do it. It’s hard in the hours. It’s a tough job in that you have to be willing to work. But if

you enjoy it, then why not?” pb Reader Serv i ce # 79

DECEMBER 2008 • PRODUCE BUSINESS 91 BOSTON RETAIL PROFILE

Del Marion Produce Manager Atlantic Food Mart Neighborhood supermarket offers quality and service from employees who care.

By Jacqueline Ross Lieberman

mployees at Atlantic Food Mart, a family-owned supermar- but they also care about their consumers. “I’ve known a lot of cus- ket in Reading, MA, tend to stick around — 10, 20, even 30 tomers for years,” reports Marion. “Some people are here every Satur- years. Produce manager Del Marion, an employee for near- day morning at 7:02.” ly 20 years, says, “It’s a single store — we work very hard.” Employee interaction with shoppers is one aspect that makes Explaining the camaraderie, he adds, “We go to all of each Atlantic Food Mart stand out. “I love to talk to people,” says Marion. “I Eother’s weddings.” cut open produce, such as a cactus pear, to show them what’s inside.” Not only do the store’s 200 employees treat each other like family Originally part of a small chain known as Atlantic Butchers of New

92 PRODUCE BUSINESS • WINTER 2008 BOSTON RETAIL PROFILE

remodeling and expansion pro- out loose, I have one lady [who asks], ‘Will jects, the latest in 1998. you wrap this for me?’” he reports. Atlantic is different from the Much of the demand for packaged produce chain stores that continue to is due to trust. “They know the stuff is going to advance upon its territory. be good inside,” explains Marion. Despite two new supermarkets The department’s top-quality candies, nuts opening nearby, the independent and dried fruit — neatly displayed and stacked market is holding its own. Some high in a row of tamper-resistant clamshell shoppers appreciate that the containers — continue to sell well. “It does store is on the smaller side — fantastic,” explains Marion. “Even with the approximately 88,000 square feet recession and people holding back, this does — with wide aisles. “You can not stop. It’s a little time-consuming for us to come in and get all your shop- pack it up and price it up, but people love it.” ping done in 25 minutes,” explains Marion. Candy-coated sunflower seeds, chocolate-cov- Its relatively small overall size does not ered almonds, Jordan almonds, raw nuts, mean Atlantic dedicates any less space to pro- dried pineapple and dates move at an aston- duce, however. “It’s much smaller than your ishing rate. “One of my biggest sellers is raw average store, but the produce department is almonds,” reveals Marion. as big as your average store,” he adds. Premium juices also continue to sell well Consumers line up for Atlantic’s salad bar despite the economy. “That’s what some peo- each day at lunchtime, and many purchase ple want, and that’s what they’re going to get,” containers of fresh-cut fruit that are delivered he adds. to the store daily. Because of the Local produce — often called “native” in store’s small size — both up front the Boston area — is popular here when in and in back — employees must season. In addition, organic items continue to constantly replenish displays with grow in popularity. As more organic items fresh fruit and vegetables. “Stuff become available, “We try all kinds of things,” comes in and goes out as fast as according to Marion. “Baby peeled organic we can [allow it],” notes Marion. carrots sell. Organic cherry tomatoes and regu- Consumers are spending less, lar organic tomatoes sell well, too, along with and “Food is no exception,” notes organic celery.” Marion. That is not to say people Some other organic items, such as broccoli are buying less food at Atlantic, and the leaf lettuces, have not fared as well, but they are trying to spend less. perhaps because of the large price differences Sales of some processed items are between organic and conventional, Marion down, while sales of whole fruits and vegeta- reasons. “The carrots aren’t that far off, but bles are up. “As of late, [whole produce] is some things are way more expensive.” considered more of a value-added item. Peo- He says in addition to a bustling produce ple are looking to do it on their own. I even department, the store has “an awesome noticed that with bagged salads, which have seafood department” specializing in fresh — always been popular, people are cutting back. not frozen. The deli and bakery are popular, Lettuce is selling better.” bulbs, anoth- too. A full license allows the store to er luxury item, are not selling as well as they carry beer, wine and liquor. pb have in other years. Atlantic is doing what it can to lighten the economic burden for consumers. “I find that with the tightening, we risk more, lower the margins to keep people happy,” adds Marion. ATLANTIC FOOD MART Despite the decline in sales of 30 Haven St. processed items, convenience is Reading, MA 01867 still important to Atlantic’s cus- tomers. “People won’t touch a Business hours grape with seeds or a watermelon Monday - Saturday with seeds,” he notes. Packaged 7:00 AM to 9:00 PM items — often packed in-store — Sunday England, Atlantic Food Mart has grown con- remain more popular than bulk. For instance, 8:00 AM to 8:00 PM siderably since George Rubin purchased the with asparagus, “I can have one display of then-1,500-square-foot store in 1922. The loose and one display of packaged, and the store has subsequently undergone seven packaged does better. When I put something

DECEMBER 2008 • PRODUCE BUSINESS 93 BOSTON RESTAURANT PROFILE Summer Winter Fresh, regional fare is the key — no matter what the time of year.

By Jacqueline Ross Lieberman

t Summer Winter, the décor is both rustic and elegant, tradition- al and contemporary. Stainless cocktails, come from the greenhouse. steel is juxtaposed with the warm In summer, when the restaurant grows up wood of the open kitchen and to 40 percent of the produce it serves, the roughA stone is used alongside a smoked-glass patio is home to peas, husked cherry toma- countertop at the oyster bar. seats in toes, beans, pac choy — an Asian green that doesn’t make it taste better.” the lounge face a -topped bar where Fahey likes to pick young to mix with mesclun Evolving with the seasons and the latest patrons stop to indulge in an innovative cock- — radishes, kale and other delights. “I’m trends, Summer Winter’s menu changes an tail before heading to the spacious glass- growing some cold-tolerant crops that go average of eight times a year. Gallagher favors ceilinged main dining room that overlooks a straight through the winter — miners lettuce special seasonal dinners, such as one meal that greenhouse that will look down into a garden [sometimes called winter purslane], mâche, revolved around heirloom apples and another next spring. garlic,” she adds. that utilized pumpkins in a variety of ways. When chef/owners Clark Frasier and Mark Alas, potatoes are a little trickier. “Contain- “Autumn is my favorite time to cook,” he Gaier opened this, their third restaurant, a year er planting is much more challenging,” she admits. “You’ve got all the squashes coming ago, “They specifically wanted to use tradi- explains. “A lot of root vegetables just don’t do out. I love squashes for everything from soup tional New England materials in a contempo- as well. I do things that have quick turnover.” to purées.” rary design,” explains Jim Gallagher, chef de Just as the open kitchen invites guests to One night this autumn, the menu included cuisine. It seems fitting for a restaurant that chat with the chefs, some patrons occasionally an appetizer of smoked trout with lemon- uses the most local of local produce — grown venture onto the patio to see what goes on hazelnut dressing over greens. Small bites, in its own patio garden — to create innovative there. “I love it when people come out,” says which Gallagher refers to as “American tapas,” cuisine often based on traditional favorites. Fahey. “They don’t know what anything is and included Greek feta cheese with extra-virgin The greenhouse on the patio and the con- I say, ‘This is a fresh pea. Try it!’ During break- oil and fresh herbs. Staff and guests tainer plants surrounding it are functional and fast, kids will come out here while their par- favored an Asian-inspired baba ganoush beautiful. Master gardener Ryan Fahey, 23, cul- ents eat and go, ‘What’s this?’ and help me called Strange-Flavored Eggplant. Entrées tivates the crops year-round using chemical- harvest. The reaching-out aspect is something included confit duck leg and roasted duck free techniques for the freshest ingredients. I really like here.” breast with cherry sauce as well as a Kobe During spring and summer, the area practical- Gallagher would like to see Summer Win- burger with basil aïoli. ly bursts with fruits, vegetables, greens, edible ter’s homegrown produce play a larger part in Big harvests from the garden offer a unique and herbs. The greenhouse produces future menus. “I want to start growing more challenge when planning the day’s specials, fewer fruits, vegetables and flowers when the and more of our own stuff,” he states. according to Gallagher. “Sometimes we put weather grows cold, but quite a bit of fresh Meanwhile, he tries to get food grown in together a combination of flavors where I say, produce still comes from here, she adds. New England as often as possible. While local ‘Wow, that’s pretty good. I wish I’d thought of Inside the greenhouse, lemons and limes is best, “Regional is a better word for me,” he that before.’” pb used in the bar grow on small, potted trees. says, explaining it’s not always possible to get The leaves and zest will be utilized, too. food from within 50 miles of the restaurant. SUMMER WINTER Business hours Herbs, such as a variety of mints, often find Gallagher is keenly interested in how his Located inside the Monday - Friday their way to the drink menu. Microgreens such ingredients are grown because the majority of Burlington Marriott 11:30 AM to 2:30 PM as bok choy, arugula, beet, carrot and kohlra- the produce used in the restaurant is pur- 1 Mall Road 5:30 PM to 10:00 PM bi, are also harvested. “Nothing grows to full chased. The growers he uses often grow with- Burlington, MA 01803 Saturday size here because we have so much demand,” out chemicals but are not certified organic, Ph: 781.221.6643 12:00 PM to 2:30 PM explains Fahey. Even edible flowers, which are and that’s fine with him. With organic, “It’s 5:30 PM to 10:00 PM often frozen inside ice cubes to add color to always a thought, but just because it’s organic

94 PRODUCE BUSINESS • DECEMBER 2008 M E R C H How To Merchandise A N D I Florida Citrus With Ease S I N Layer on profits by stocking long-time favorites and new varieties from the Sunshine State. G BY CAROL BAREUTHER, RD R E urricanes, diseases and loss of will continue to fight it through research V grove acreage to commercial and best management practices as we head I development have presented — into the new season.” and continue to present — chal- Looking ahead to 2008-09, the good news E lenges to Florida’s signature cit- is that tropical storm Fay in August did not W Hrus crop. Yet to many growers, the future of uproot trees or cause a significant amount of the industry looks sunny thanks to exten- fruit to drop to the ground, he adds. In fact, sive new varietal breeding. rains were welcome and bode well for the David Mixon, senior vice president and upcoming crop. chief marketing officer for Seald-Sweet Darrell Genthner, director of marketing International, Vero Beach, FL, says, “Multi- and business development, Noble World- ple varieties that offer unique niche market- wide, headquartered in Winter Haven, FL, ing opportunities will be a reality in the says, “We anticipate an excellent season, future. That’s where the excitement is.” starting about two weeks earlier than in the The 2007-08 crop finished at 169.7 mil- previous three or four years with fruit of lion boxes of oranges, 26.6 million boxes of good quality, meaning good size and high grapefruit and 5.5 million boxes of tanger- brix or sugar.” ines, according to the U.S. Department of Agriculture (USDA) National Agricultural WHAT’S HOT Statistics Service’s (NASS) final seasonal Retailers like to stock tried-and-true Flori- Florida citrus report issued July 11. da citrus while also searching for something Florida navels run from mid-October The 2008-09 Florida orange crop is esti- new. “Our stores carry most — if not all — through January. mated at 166 million boxes, down 2 percent varieties of citrus grown in Florida,” says from the previous season’s final utilization, Maria Brous, director of media and commu- encouraged to sample.” but it is 29 percent higher than the 2006-07 nity relations, Publix Super Markets, Inc., a Peter Chaires, executive director of the crop, according to the NASS Crop Production 950-plus-store chain based in Lakeland, FL. New Varieties Development & Management report issued Oct. 10. Florida’s 2008-09 tan- “This includes navels, grapefruit, tangerines, Corp. (NVDMC), Lakeland, FL, and director gerine crop is forecast at 4.9 million boxes, Valencia oranges, tangelos and more.” of business development for Florida Citrus down 11 percent from the 2007-08 season, “We look for new and exciting items to Packers, Lakeland, FL, sites a consumer while the grapefruit crop is estimated at 23 offer our consumers that will give them a sat- taste panel conducted in fall 2007 in cooper- million boxes, down 14 percent from 2007-08 isfying eating experience,” states Jay Schnei- ation with the Florida Department of Citrus season. Industry insiders, however, predict a der, category manager for produce, eastern (FDOC), Lakeland, FL. “When we put early further reduction in the 2008-09 orange crop division of the 134-store Malvern, PA-based selections in front of consumers, we found — as low as 150 million boxes — with the , owned by Eden Prairie, MN- they liked the fruit to be an easy-peel, easy- state’s total citrus acreage down 11 percent based Supervalu Inc. “We save room for new to-eat and not too juicy, flavorful, but not from the latest Census taken in 2006. varieties and we evolve and find the space as necessarily seedless,” he states. “We had “The industry is facing many challenges new products are developed.” thought completely seedless was the goal. right now, most prominently a disease Publix merchandises new citrus varieties However, consumers clearly accepted low called citrus greening, which has the poten- to attract consumers, notes Brous. “Informa- seeds, meaning 7 to 8 per fruit, if the inter- tial to devastate our crop,” explains Michael tional material is shared with the associates nal quality of the fruit was exceptional.” Sparks, executive vice president and CEO, to better educate them about these new Florida is home to two citrus-breeding Florida Citrus Mutual, Lakeland, FL. “We products,” she adds. “Consumers are also programs. One is the USDA-Agricultural

DECEMBER 2008 • PRODUCE BUSINESS 95 M E Merchandising Tips And Marketing Initiatives R C H ublix Super Markets, Inc., Lakeland, year to year, says Paul Koukos, general will inform consumers how to use grapefruit FL, boasts a long tradition of aggres- manager of fresh citrus operations, Duda as a key ingredient to become ruby-red car- A P sively supporting Florida citrus grow- Farm Fresh Foods, Inc., Oviedo, FL. “Allocat- pet ready every day,” reports Karen Mathias, N ers and has always made them a high prior- ing the proper amount of footage for your FDOC public relations director. ity. “We highlight Florida citrus during the citrus display is important for maintaining a All Florida citrus will be featured in a D D peak season,” states Maria Brous, director of fresh-looking citrus area. Determine how series of customized 15-second messages I media and community relations. “This call- much fruit each store can sell within a 2- to that will run every eight to 10 minutes for 14 S out is in our ad circular and can’t be missed 3-day window and plan the space allocation hours a day on 42-inch plasma screens as due to the high graphics and variety presen- accordingly. If you have more fruit on dis- part of the SignStorey Digital Media network. I tation. Our displays are built to represent play than can be sold in a few days, it is These messages, which will play in January, N variety, seasonality and contrasting colors.” only a matter of time before shrink will February and March in produce, deli and When determining what mix of product begin to rise.” meat departments in various retail outlets in G to stock, “Equate a value proposition for This year, the Florida Department of the Northeast, New England and Midwest, your target consumer,” recommends Darrell Citrus (FDOC), Lakeland, FL, will have more including as Acme Markets, Malvern, PA; R Genthner, director of marketing and busi- specific marketing plans. “Grapefruit will , Montvale, NJ; ShopRite Supermar- ness development, Noble Worldwide, Winter be the focus of an integrated national kets, Elizabeth, NJ; Price Chopper, Rotterdam, E Haven, FL. “Is it bargain, traditional, quality- advertising and public relations campaign NY; Shaw’s Supermarkets, West Bridgewater, V conscious or gourmet-trendy? Category targeted toward younger consumers,” MA; Foods, Inc., Springfield, MA; and development and growth comes from intro- explains Leigh Killeen, FDOC director of -Osco, Melrose Park, IL. I ducing and properly merchandising product domestic marketing. “We saw a 4.5 percent increase in sales E that appeals to gourmet-trendy consumers.” Valerie Waters, celebrity trainer, entrepre- for Florida grapefruit, oranges and specialty W Dollar sales for the citrus category have neur, and author of Red Ready, will be fruit this past year as a result of the Sign- been on the rise during the past three years the face and voice of the FDOC’s Go Florida Storey promotion,” states Pete Palmer, FDOC while volume has slightly declined from Grapefruit program this year. “The program retail communications director. pb

Capital 1 66 40 #3 # # Reader Serv i ce Reader Serv i ce Reader Serv i ce

96 PRODUCE BUSINESS • DECEMBER 2008 Research Service (ARS) laboratory in Ft. of January, in the window between summer Pierce, FL, says, “Florida grapefruit has Pierce, FL, and the second is University of imports and California’s peak production rebounded since the hurricanes of 2004 and Florida’s (UF) Institute of Food and Agricul- from January through March. is regaining shelf space. The demand is tural Sciences (IFAS) Citrus Research and Florida’s Valencia crop begins in Febru- strongest from January to March during its Education Center in Lake Alfred, FL. This ary and runs through June. Some packag- peak flavor time.” year, out of some 16,000 to 17,000 unique ing houses have begun to store Valencias Marketing the nutrition profile of grape- crosses developed annually, USDA pro- with availability in 2009 extended into mid- fruit and providing fresh quality fruit in the duced three varieties — 1 orange, 1 grape- July 2009. stores help grow the grapefruit category, fruit and 1 tangerine — and UF produced 11 The Seedless Pineapple Orange is the advises Duda’s Koukos. varieties — 4 oranges and 7 tangerines — new USDA-developed orange variety, notes Demand for white-fleshed grapefruit is all that will be in the state’s nurseries this fall the NVDMC Chaires. “It’s a mutation that is but non-existent in the domestic market, with commercial quantities to follow in five a vast improvement over the current reports Rob Rath, sales manager, Heller Bros. or so years. This breeding pipeline will con- Pineapple Orange. It’s a mid-season variety Packing Corp., , FL, “except tinue to produce new varieties annually for and runs from December to February.” for a small niche market in the Northeast.” several more years. The four new orange varieties out of Seald-Sweet’s Mixon adds, “White-fleshed UF/IFAS include an improved Hamlin with grapefruit is misunderstood. It has a brix-to- ORANGE VARIETIES better interior color and nearly no seeds, acid ratio that gives it a unique flavor, but Oranges represent nearly 45 percent of according to Chaires. “There’s also an American consumers buy with their eyes the citrus category share, reports Paul improved mid-season orange with better and they think dark red is ripe.” Koukos, general manager of fresh citrus color and a low seed count, a new Valencia Domestic production of white grapefruit operations for Duda Farm Fresh Foods, Inc., that comes to market in January that will be is less than 5 percent, says Paul Genke, Oviedo, FL. a boon to processors and a seedless Valencia director of sales and marketing, Packers of “Florida navels run from mid-October available from April or May to June for the Indian River Ltd., Ft. Pierce, FL. “Even off- through January,” notes Al Finch, director fresh market.” shore markets, such as Japan, are moving to of marketing, Diversified Citrus Marketing, the red. I’d say they were 60/40 now — red Inc., Lake Hamilton, FL. GRAPEFRUIT REBOUNDS to white. A few years back, information Cara Cara or red Navels “are something we One of the big draws for consumers at about the lycopene content in red grapefruit spotlight as a different variety option and Acme is Florida’s pink grapefruit, according was broadcast and that started the trend.” taste for our consumers,” adds Acme’s Schnei- to Schneider. “We’ve seen more call in the last three der. Red Navels from Florida are in largest Kathy Hearl, marketing promotions years for pummelos [or Chinese grapefruit],” 1 supply from late-November to the beginning manager for DNE World Fruit Sales, Fort states Noble’s Genthner. “They’ll brix 10 ⁄2 by 4 # Reader Serv i ce

DECEMBER 2008 • PRODUCE BUSINESS 97 M October, while grapefruit is just 9 in Novem- variety from the USDA’s breeding program. fresh citrus.” E ber. Some retailers, especially those that tar- “It’s a cross between a tangelo and a grape- The Clementine’s popularity continues get gourmet-trendy consumers, are putting fruit or three-fourths grapefruit and one- to grow with nearly year-round availability R out pummelos before grapefruit.” fourth tangerine,” states NVDMC’s Chaires. as a result of imports, says DNE’s Hearl, C Enticing consumers to make this trade- “It’s bitterless and seedless with a white-gold “However, consumers still love the various H up requires education, points out Genthner. flesh. It won’t be in nurseries until 2009.” tangerine varieties that Florida has to offer H 1 “Our PLU sticker on our pummelos is 3 ⁄2 as well. Fallglo tangerines start in late Sep- A inches in diameter. That allows us to SPECIALTY CITRUS tember, followed by Robinson tangerines a N include information such as what the fruit During the past 10 years, “The tangerine few weeks later. Sunburst tangerines are looks like on the inside, health attributes as subcategory has shown growth potential available by late October.” D D well as how to select, prepare and store it. with a rise in consumption,” reports Duda’s Dancy tangerines follow in December I These are all purchase triggers.” Koukos. “Specialty citrus or easy-peelers and January, Orlando tangelos in January, S The Seedless Surprise is new grapefruit seem to be the continuing bright spot for Minneola tangelos in January and February, and Honey tangerines (Mureotts) from Jan- I uary to April. N “Bringing in these varieties as they become available adds excitement through- G G out the season,” says Seald-Sweet’s Mixon. “We offer retailers an ad planner so they can R know what is available when, manage their inventory and plan promotions in advance.” E The new tangerine variety from the V USDA’s breeding program is the Early Pride tangerine, according to NVDMC’s Chaires. I “It’s virtually seedless, meaning from 0 to 4 E seeds per fruit, an easy peel and harvested W in the October to December window.” The UF/IFAS program has produced exceptional-quality easy-peelers with seeds that will be available in January and Febru- ary. These include a new tangelo hybrid that will be available in December and Janu- ary; a traditional tangerine that is approxi- mately double the size of the venerable Dancy, smooth-skinned, brilliant orange in color and a somewhat lower seed version of the current Dancy tangerine; an early seed- less tangerine available in October with good color; a seedless tangerine available between November and December; and two interesting mandarin-orange hybrids with easy-peel attributes, good color, excellent fla- vor and a January-February availability.

COMPETITION AND COOPERATION “Increased competition from imported and California-grown specialty citrus has caused Florida growers to begin examining other specialty citrus varieties that are com- patible with their own growing conditions,” notes Duda’s Koukos. In recent years, a cooperative effort between Florida and other citrus-growing states, such as Texas, Arizona and California, has taken shape in exchange of plant materi-

4 al, reports NVDMC’s Chaires. “The goal is to

#3 expand the season and market potential for different varieties.” Diversified’s Finch adds, “Florida citrus is being marketed more during the first half of the season rather than the back half, espe-

Reader Serv i ce cially for oranges and specialties.” pb

98 PRODUCE BUSINESS • DECEMBER 2008 D R I E Health-Conscious Consumers D F R U Driving Almond Sales I T Give this nutritious nut a boost by highlighting health attributes and usage ideas. & BY K.O. MORGAN N U s health-minded consumers T demand more variety in their S diets, tree nuts are becoming more popular. This trend rings particularly true for almonds Abecause they’re easy to eat and pack a pow- erful nutritional punch. “Almond consump- tion in the United States doubled from 1999 to 2007,” according to Harbinder Maan, manager of foodservice and industrial mar- keting, Almond Board of California (ABC), Modesto, CA. “Each year, the board con- ducts the annual North America Attitudes, Awareness And Usage Survey [in conjunction with] Sterling Rice Group, [Boulder, CO], and this year’s research indicates consumers believe almonds are nutritious and they per- Almond-containing, packaged food products in North America grew 30 percent ceive any product with almonds to be more from 2006 to 2007. healthful than one without.” Marvin Lyons, produce director, Bigg’s, a Cincinnati, OH-based chain with 13 stores “We offer no-salt and salted/roasted,” Nut Co., Modesto, CA, notes an increase of and a subsidiary of Eden Prairie, MN-based adds Jackie Mulholland, produce manager, almonds used in granola bars, and Supervalu, Inc., agrees. “We’ve always car- at the Farm Fresh Food & Pharmacy store in trail mixes as well as a wide variety of fla- ried sliced and whole almonds, but now, we Hampton, VA, one of 45 stores owned by the vored almonds such as chocolate-coated, sell more than we used to because of the Virginia Beach, VA-based chain. “Consumers roasted and lightly salted. “A popular one is many healthful benefits of almonds that prefer no-salt because it’s a healthful snack. Cajun spices,” he adds. [were released] about three years ago.” They also like the re-sealable bags that “The exciting news for almonds is that “Almonds are the most popular nut with make snacking on almonds easier, plus they they are an exceptionally versatile, value- consumers because they taste better, are keep the nuts fresher. It’s a grab-and-go kind adding ingredient,” states Maan. “Almonds more nutritious [than other nuts], help of thing that’s healthful at the same time.” are available in more forms than any other maintain weight and contain no choles- nut and they complement an array of food terol,” adds Maan. “Consumers say they VARIETY AND VERSATILITY flavors and applications. Almonds provide specifically choose almonds in grocery Almonds can be found in a wide range of subtle flavor, crunch and aesthetic appeal stores, in restaurants and as a healthful products and have a wide range of uses. without overpowering, which is why we see snack for these reasons.” They’re popular because they’re healthful almonds in sweet and savory applications According to Brandon Steele, vice presi- and offer a subtle, buttery flavor. “Almonds from a romesco sauce to a chocolate-cov- dent of marketing, Fresh Gourmet Co., a Los are a very versatile nut,” explains ABC’s ered almond.” Angeles, CA-based manufacturer of croutons, Maan. “They have a general appeal because Farm Fresh’s Mulholland says his con- “Raw, unsalted almonds are very popular. they’re not overpowering. For this reason, sumers often use sliced almonds, such as Other popular choices among consumers are they score well on taste, texture and satisfac- ranch, honey-roasted, garlic parmesan and toasted and honey toasted — both in whole tion on the surveys we’ve conducted.” original flavors, to top salads. and sliced forms.” Jared Smith, sales and marketing, Fisher “We’re out six new products —

DECEMBER 2008 • PRODUCE BUSINESS 99 D department can boost sales,” advises Farm R Fresh’s Mulholland. “Use recipe cards that I Almonds Pack include almonds as an ingredient on dis- I play next to the nuts and in different parts E A Powerful Punch of the store.” D Fresh Gourmet’s Steele stresses the etailers can boost almond sales by pushing the numerous attributes driving the importance of the salad business to the pro- category. According to a study conducted by the Almond Board of California duce industry. “Produce executives are not F F R (ABC), Modesto, CA, new almond-containing packaged food products in North just in the produce business — they’re in R America grew by 30 percent from 2006 to 2007. the salad business. They need to look at U Harbinder Maan, manager of foodservice and industrial marketing, says almonds their business this way. In upscale restau- score well with consumers on taste, texture and satisfaction, according to the study. Top rants, nuts, such as almonds, are the new I reasons why consumers purchase almonds include subtle taste, nutritional value, per- croutons. The produce manager needs to T ceived ability to help in weight maintenance and low cholesterol content. look at it through consumers’ eyes and ask, The fact that re-sealable bagged almonds are a convenient and healthful on-the-go ‘How can we make the connection between & snack as well as the wide variety of almond products available are also driving the buying produce for a salad and buying & growth, according to the study. pb other items, such as almond toppings?’ It’s a big growth opportunity for the depart- N ment and for the store.” U On the surface, salad items and baking two of which are almonds,” states Fresh benefits. “The United States nearly doubled goods may look like small purchases in and T Gourmet’s Steele. “Our brand is only sold in from 183 almond products launched in 2003 by themselves but, Steele points out, pro- S the produce department. Our almond top- to 312 almond products launched in 2007, duce managers and store managers should pings include natural, sliced-toasted and while Canada more than doubled its launches look at the bigger picture — the potential to honey-roasted almonds.” over the same period, from 42 to 109,” says turn these smaller purchases into larger pur- Bigg’s Lyons reports, “Toppers have ABC’s Maan. “This is due in part because con- chases. “You’re not just selling components; become a favorite among consumers. We do sumers believe almonds are nutritious and you’re selling meal solutions or recreations sell a lot of toppings for salads and sales perceive a product with almonds to be more of meals that consumers have experienced have picked up tremendously.” healthful than one without.” away from home. When linked to individual “Salad consumers are reaching out for Fisher’s Smith agrees, adding, “The salad items, bagged salads and baking more ways to eat salads and more varieties in biggest health trend pushing sales right now recipes, almonds can be a big piece. salads,” points out Steele. “It’s all because of is eating more natural foods such as “Retailers need to think of almonds as a what they’re experiencing at restaurants, almonds. The best way to market this trend bigger sales opportunity,” Steele continues. where salads have gone from being a side is through exposure to almonds in different “Be creative in your marketing — when you dish to the main dish. In fact, salads as parts of the store — sliced almonds near let- buy this with that, we’ll take a dollar off. entrées are the fastest growing menu item. tuce and other salad produce, whole Consumers are getting more variety in Consumers want to recreate this experience almonds near chips and beer items, almond restaurants, so they want more variety at at home, which has driven our expansion toppings near salad dressings and sliced home. Almond products can be the key into food items such as almond toppings. If almonds near baking goods.” component they’re looking for and truly retailers look at the bigger picture of selling “A big display of almonds in the produce help retailers drive sales.” pb produce or selling bagged sal- ads, toppers, such as almonds, can be profitable.” Maan agrees, “According to the most recently available fig- ures from the Mintel Global New Products Database [Chica- go, IL], new almond-containing, packaged food products in North America grew 30 percent from 2006 to 2007. Almond introductions strongly outpaced the growth of nut products in general, and the rate of new food-product launches overall.”

SUBTLE TASTE, NOT SO SUBTLE SALES Almonds continue to gain fans in the United States and Canada as consumers learn more about their nutritional

100 PRODUCE BUSINESS • DECEMBER 2008 FLORAL WATCH Tropical Plant Industry Exhibition January 15—17, 2009 Broward County Convention Center TPIE Fort Lauderdale, FL Hosted by Florida Nursery, Growers and Landscape Association (FNGLA), Orlando, FL Tropical Plant Industry Exhibition (Booth numbers are subject to change.) AISLE-BY-AISLE BOOTH PREVIEW Booth 104 Booth 124 Booth 225 Booths 230, 237, 3003 Bill Brown’s Greenhouses Decowraps AG 3, Inc. Primescape Products Co. Apopka, FL Miami, FL Eustis, FL Buffalo Grove, IL Bill Brown’s Greenhouses Since 1999, Decowraps has become a AG 3 is a biological technology com- Booth 230 has sub-irrigation tanks and is the nation’s largest leading supplier of distinctive packag- pany producing and selling tissue cul- exclusive custom-colored Lechuza manufacturer of foliage ing options for all levels of fresh ture liners. Our location in Eustis, FL, products. Booth 237 showcases our and cactus terrariums. Our mission is flowers and potted plants. We offer produces herbaceous perennials, latest interior landscaping container to provide our customers with the prompt service, simplified logistics, grasses, sedges, bulbs, insectivorous and supply products and all-new Web finest selection of product available. and competitive pricing. Our custom- and tropical varieties; our location in site. Booth 3003 has an up-close look We ship throughout the United States made orders are attended to with the Apopka, FL, produces landscaping at the finest American-made decora- and Canada. highest level of integrity. plants, foliage, aquatics and ferns. tive pots on the market.

Booth 239 Booth 325 Booth 420 Booth 429 R220 Tropical Landscapers, Inc. Allied Growers, Inc. MCT Transportation, LLC Kerry’s Nursery, Inc. Boynton Beach, FL Fort Lauderdale, FL Sanford, FL Homestead, FL We specialize in growing and We are internation- Providing on-time, consistent service We create demand with the most collecting bougainvillea — bush, al distributors and for the foliage industry, MCT prides -forward products featuring trellis, standard and one- contractual growers of tropical and itself on accommodating the needs of the highest quality orchids, of-a-kind specimens. We blooming plants, serving the horticul- our customers. Whether you’re a gar- bromeliads and eye-catching also have adonidia palm, tural and floral industry for over 25 den center needing a delivery for the from around the world. Discover how ponytail palm and a large years. For the most eclectic collection springtime rush or an interiorscaper our compelling, value-minded living variety of unusual flora of rare and unusual foliage and flow- with a tight schedule for an installa- arrangements can help you grow from 3- to 300-gallon. ers, Allied is the source. tion, MCT gets the job done. your floral department.

Booths 603 Booth 635 Booth 727 Booth 911 Oglesby Plants International, Inc. Sorensen Greenhouses, Inc. Nurserymen’s Exchange Wekiwa , Inc. Altha, FL Ramona, CA & Ruthven, ON, Canada Half Moon Bay, CA Apopka, FL A breeding and propagation compa- We are proud to introduce our new One of the largest wholesalers of Growing quality plants for the ny specializing in tropical plants, Home Cactus Collection series indoor plants, tropical foliage and discerning garden center, grocery and Oglesby offers high-quality, tropical, featuring our superb quality cacti and decorative accessories, servicing interiorscaper. We have zebras, spike young plants. Well-known for innova- succulents in precision-crafted, retailers nationwide. Our excellence moss, ferns, cissus, lipstick and tive varieties with consistent quality home-décor friendly pots. and inspired design is evidenced in all pothos. Growing foliage plants for and on time deliveries, Oglesby is the Visit our booth and see the difference our products. For over 67 years, retail- more than 40 years, we offer unique young plant supplier of choice for quality makes. The best cacti, the best ers have found exceptional quality presentation, quality and value so you both big and small wholesale growers. succulents, the best consumer value! and value under our BloomRite brand. may offer your customers the same.

Booth 912 Booth 927 & 1127 Booth 1111 Booth 1211 Mulvehill Nursery, Inc. Deroose Plants, Inc. Flori-Design, Inc. Dyna-Gro Nutrition Delray Beach, FL Apopka, FL Eustis, FL Solutions Mulvehill Nursery is a family business Quality and strong customer service Our products are designed to maxi- Richmond, CA that has been growing tropical foliage are our areas of focus at Deroose mize profitability for our customers’ Dyna-Gro Nutrition Solutions contain since 1976. Walk-in customers, LTLs to Plants. Whether you’re looking for niche markets. Perfect home décor, all 16 essential elements full loads — we have 40 acres of high-quality liners or unusual and each dish garden is designed with the plants need for optimum growth and foliage and landscape plants just for highly desirable finished products to consumer in mind. We start with well- flowering. Pro-TeKt reduces environ- you! Store drops, UPCs, care tags and boost your profits, we have a line to fit rooted, healthy plants, then carefully mental stresses by strengthening cell shine available. We are certified for your business needs. Let us grow plant them in a special soil mix to walls. K-L-N Rooting Concentrate and AZ, TX, LA and Canada. along with you. ensure a long shelf life. Root-Gel stimulate root growth. Booth 1301 Booth 1309 Booth 1311 Booth 1411 Eve’s Garden, Inc. JRM Chemical Cleary Chemical Florida Tropiculture, Inc. Land O’ Lakes, FL Cleveland, OH Dayton, NJ Miami, FL Eve’s Garden, estab- Each package of Deco Beads makes For 73 years, Cleary Tropiculture is family 1 lished in 1979, is a family-owned bon- over 1 ⁄2 quarts of round, translucent has supplied the owned. We are growers and distribu- sai tree and lucky bamboo nursery. beads for floral arrangements. Avail- fine-turf and ornamental industries tors of indoor and tropical foliage. For We offer unique products designed, able in 10 colors, they are less expen- with plant protection products, utiliz- 22 years, we have been meeting the produced and sold directly to you. sive and more attractive than ing the most up-to-date technology. needs of our satisfied customers Our mission is to provide our cus- and do not damage flower stems. Ever alert to specific needs, we will be across the United States, Canada and tomers with the best quality, pricing Available in color-coded retail pack- adding innovative products for the the Caribbean. Let us help boost your and customer service possible. ages, displays and bulk sizes. turf and ornamental markets. profits with our beautiful plants.

Floral 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]

DECEMBER 2008 • PRODUCE BUSINESS 101 FLORAL WATCH Tropical Plant Industry Exhibition January 15—17, 2009 Broward County Convention Center TPIE Fort Lauderdale, FL Hosted by Florida Nursery, Growers and Landscape Association (FNGLA), Orlando, FL Tropical Plant Industry Exhibition (Booth numbers are subject to change.)

AISLE-BY-AISLE BOOTH PREVIEW Booth 1413 Booth 1427 Booth 1920 Booth 1939 Razbuton Ferns, Inc. Plants In Design, Inc. Palm Tree Packaging Jade Systems, LLC Winter Garden, FL Miami, FL Apopka, FL Mills River, NC Bright, bold and beautiful — our Plants In Design is best known by Palm Tree Packaging Over 35 years in the greenhouse 10-inch fern baskets speak for interiorscapers who demand is a manufacturer of plant and floral industry providing customers with themselves. Exclusively for TPIE, we florist-grade bromeliads at all times. sleeves. We make sleeves out of a personal service, Jade offers state-of- are offering special prices for these While interiorscape has been our large variety of materials including the art, world-renowned glass green- 10-inch beauties when they are targeted market for more than 25 HDPE, CPP, BOPP, fiber, and Kraft houses manufactured by KUBO, shipped to you before Valentine’s Day. years, we ship significant quantities paper. Custom can be done turnkey projects, custom-designed Please visit our booth for full details of these plants directly to upscale to photo quality. Come see our shade systems and aluminum table on pricing. garden centers and supermarkets. newest product, the Bag. systems with roller conveyors.

Booth 2104 Booth 2115 Booth 2315 Booths 2327 & 2335 Boynton Botanicals Vaughan, Inc. A-Roo Company, LLC Bernecker’s Nursery, Inc. Boynton Beach, FL Sanford, FL Strongsville, OH Goulds, FL Boynton Botanicals is a wholesale In business more than 70 For more than 40 years A-Roo has Beautiful palms discovered in the nursery offering an extensive selection years, Vaughan specializes in unique created marketing, merchandising Yucatan by Leo Bernecker have added for the professional. Our exceptional foliage dish gardens for the supermar- and packaging solutions for the warmth and gracefulness to homes quality and diversification are a small ket and wholesale floral trade. Dish floral industry. We have containers, and businesses for more than 40 part of what make us different. Cus- gardens for all major floral holidays vases, decorative packaging, display years. When Bernecker’s palms are tomer service is always at the forefront and many whimsical year-round items. fixtures and accessories, films, sleeves teamed with our line of Lechuza sub- and we look forward to providing you We can custom-produce anything and and wraps, pot covers, ribbons, bows irrigated containers, watering may be a product of beauty and value. deliver throughout the United States. and picks. required only once a month.

Booth 2421 Booth 2525 Booth 2952 Booth 430 Driftwood Gardens, Inc. Stewart’s Greenhouse Hawaiian Sunshine C&C Co., Inc. Apopka, FL Mount Dora, FL Nursery, Inc. Okahumpka, FL Driftwood Gardens blends natural Dedicated to providing you with the Hilo, HI C&C has been producing individual wood pieces with nursery-grown consistent quality of indoor foliage We have been shipping specialty custom blended potting media mixes tillandsia and bromeliads. Our your customers want and deserve. plants around the country since 1981. for over 25 years. Stop by our booth creative display of bromeliad wreaths Stewart’s Greenhouses understands Hawaiian volcano plants and our for information on our unique media and dish gardens as well as driftwood our business is your business and our foliage bromeliads are examples of components, including Enviro-Peat and novelty planters offer your service and quality will drive your sales our innovation and creativity. This year and Nutri-Bark. We pride ourselves in customers thoughtful and often over the top — and that is precisely we will release a new dracaena to be exceeding expectations to make your whimsical treasures of nature. our primary goal! introduced at TPIE. growing experience that much easier.

Booth 2914 Booth 2930 Booth 2960 Booth 3047 The John Henry Co. Temkin International, Inc. ASB Greenworld Chrysal USA Lansing, MI Payson, UT Valdosta, GA Miami, FL Eye-appealing packaging Liven up your floral sales with Temkin’s ASB’s peat bog is located in New Chrysal Americas is an international and merchandising products to fresh for sheets, sleeves, and Brunswick, Canada, with U.S. locations company offering a multitude of prod- enhance your bottom line. The award- rolls. New glitter organza upgrade in Georgia and Virginia. We are ucts for the complete nutrition and winning purse will be on display along sheets with stripe and swirl patterns producers of peat moss and related care of fresh- for growers, with new tag elevators and info flips available in an assortment of versatile mixes, including potting soil and wholesalers, florists and to elevate your tags/message. We colors. For additional branding, mulch products. Over 50 years supermarkets in the have the largest capacity to print tags custom wraps can be printed in up experience in the industry, United States, Canada in Lansing, Dallas and Indianapolis. to eight colors. international market presence. and Latin America.

TPIE is the trade Booth 3051 Booth B208 Booth B409 2906 event that offers Aldershot of New Mexico, Inc. Botani-Wipe MAAK Propagation TPIE everything foliage, Mesilla Park, NM Trinidad, CA & Research Tropical Plant Industry Exhibition floral and tropical — all-in-one loca- With more than 22 acres in production Botani-Wipe, The Original Wipe For Miami, FL tion at one time, at one place. TPIE’s trade near Las Cruces, NM, we are a quality Plants, is an all-natural plant and leaf MAAK Propagation & Research is a show is more than an exhibit area — it’s grower of potted blooming and polish. Non-toxic, disposable, flush- wholesale grower of landscape orna- 200,000 square feet of living, vibrant plants foliage plants. Our specialties include able and alcohol-free. Featuring 100 mental and ground-cover liners, with creating a virtual indoor garden of show-stop- mums, kalanchoes, mini roses, percent pure Neem oil, the over 20 years in the wholesale nursery per displays. Educational seminars are a pop- begonias, cyclamen, poinsettias and biodegradable wipes can clean away business. We are certified to ship lin- ular part of the annual event. With more than Easter lilies. pests, molds and dust from stems, ers anywhere and service brokers, 500 exhibiting companies, TPIE offers whole- tops and undersides of leaves. landscapers and retailers nationwide. sale buyers the widest array of resources for foliage and tropical plants in the country.

102 PRODUCE BUSINESS • DECEMBER 2008 F L O R A Reduce Shrink L & By Preventing Botrytis F O Protect floral crops against grey mold by taking proper steps to identify and control it. L I BY DR. GEORGE STABY A G E rey mold (Botrytis cinerea) is a Retailers can take serious plant disease especially proper preventa- M harmful to harvested floral tive and corrective crops. Not only do infected actions to control A flowers and plants look bad and Botrytis only after R Gcan produce more ethylene but they also the disease is K often die prematurely, resulting in dissatis- identified as the E fied consumers, lower profits and higher culprit. Before shrinkage rates. doctors can write T Growers can reduce Botrytis-induced a prescription or I damage in a number of ways, including initiate a treat- N growing disease-resistant crops, keeping ment, they must flowers and plants dry, storing them at their know what the ail- G proper low temperature and using effective ment is so they do . Unfortunately, retailers can do not prescribe the very little to control this disease other than wrong medicine keeping flowers and plants dry and storing or perform the them at the proper temperature. It’s para- wrong procedure. mount retailers know what they can do to The second help prevent this disease from developing study, conducted before they receive flowers and plants. To in 2007 by Dr. Photo by Dr. George Staby accomplish this, retailers should communi- Ann Chase, plant In an advanced state of growth and development on roses, cate Botrytis-related concerns effectively to pathologist, Chase Grey mold (Botrytis cinerea) is distinguished by a their suppliers. Horticultural grayish/fuzzy-looking material and brown petals. At this Two related but separate series of studies Research, Inc., Mt. stage, it is too late to control this disease. regarding Botrytis can help retailers better Aukum, CA, and understand this disease and how to keep it this writer, addresses how to treat the dis- that can also be present when the disease is under control. ease and describes two tests using a new in an advanced stage of growth and develop- The first survey, conducted in 2006 by treatment to help control Botrytis before — ment. However, in the study where floral Perishables Research Organization (PRO), and sometimes after — flowers and/or professionals were asked to determine if Pioneer, CA, relates to the identification of plants reach retailers. This treatment damages on various floral crops were Botry- Botrytis and describes a new, simple and involves the release of chlorine dioxide gas tis-induced, they incorrectly identified fast way to determine if visible flower from paper used in flower- and plant-ship- Botrytis 55 percent of the time. Thus, it is and/or plant damages are Botrytis-related. ping boxes. imperative retailers positively identify the pathogen if they are going to have any IDENTIFYING BOTRYTIS chance of controlling it both before and after Editor’s note: George Staby, Ph.D., is the USING “ PREGNANCY TEST” the flowers and plants are harvested. founder of Chain of Life Network and co- Botrytis symptoms and damages on floral Forsite Diagnostics, Ltd., York, England, founder and president of Perishables crops often appear in the form of brownish and EnviroLogix, Inc., Portland, ME, pro- Research Organization, both based in Pio- or dark-colored blotches on petals, leaves duce an accurate and simple-to-use Botrytis neer, CA. and stems. The common name “grey mold” test kit that retailers can use to determine if refers to the grayish/fuzzy looking material any visible symptom on any floral crop is

DECEMBER 2008 • PRODUCE BUSINESS 103 F Botrytis. Many referred to it as the “pregnan- L cy test” for Botrytis since similar technology is also used to determine if females are preg- O nant by testing their urine for a specific Botrytis Control Measures R chemical. A The Botrytis test takes about five to 10 otrytis cinerea-induced damages can cause significant financial burdens at minutes. With the Forsite test, users place retail. Now that the floral industry has two new products at their disposal for L small amounts of the damaged flower, leaf B the identification and management of this disease, retailers can implement the and stem tissue that have the Botrytis symp- following to improve crop quality, reduce losses and improve consumer satisfaction. toms into a vial that contains liquid and Retailers can quickly and easily test incoming floral crops that exhibit symptoms of & & small ball bearings. After replacing the cap, Botrytis to determine if the damages are related to Botrytis. Once they know the test users shake the vial — as if they were mak- results, they can take corrective actions, such as notifying the supplier of the findings, F ing a martini — with the ball bearings help- isolating the shipment and rejecting the shipment. ing to mix the tissue with the liquid. Finally, Retailers should request or consider requiring flowers and plants be shipped to O users place a small amount of the mixed liq- them with the chlorine dioxide-releasing paper in the shipping cartons/boxes as a pre- L uid into a receptacle to see if one or two ventative tool to reduce the chances of Botrytis spreading to healthy flowers and identification lines form. If only one line plants and thus improve overall flower and plant quality. Investing about 25¢ to 35¢ I forms, Botrytis was not found. If two lines per box of flowers or plants should result in good returns on investment. A form, Botrytis was detected. The Envi- When retailers suspect visual damages are Botrytis but the Botrytis test kit reveals G roLogix test kit works in a similar manner. that this is not the case, they should relay this information to the suppliers so they can take other avenues of identification, prevention and control to correct this problem on E BOTRYTIS CONTROL future shipments. As an example, retailers can sometimes confuse mechanically USING CHLORINE DIOXIDE induced damages resulting from rough handling of flowers and/or plants with Botrytis Chlorine dioxide is a gas that can be used symptoms. In this case, Botrytis control measures would not be the solution. pb M as a fumigant in either a liquid when mixed A with water or in the gaseous state. Com- R pared to common household bleach contain- ing sodium hypochlorite, chlorine dioxide K has about 2.5 times more oxidizing (microbe Working with TransFresh Corp., Salinas, the chlorine dioxide-releasing paper for E killing) capabilities. Its disinfecting power is CA, and Floralife, Inc., Walterboro, SC, PRO their ability to control Botrytis in shipping relatively constant over a broad pH range tested a paper delivery system on floral boxes of cut roses. Researchers held flowers T (approximately 6.0 to 10.0) and does not pro- crops. Under this delivery system, floral in these boxes for four days and determined I duce byproducts that are harmful to humans crops are wrapped in shipping boxes lined the results. N or the environment. with paper that releases chlorine dioxide in The addition of chlorine dioxide-releasing The floral industry currently uses a response to moisture (water or humidity). paper to flower boxes reduced the number of G water version of chlorine dioxide to sanitize The gas then can control certain pathogens Botrytis colonies developing (and hence the irrigation systems in greenhouses and devel- such as Botrytis. spread of this pathogen) by an average of 85 op other water versions as sprays or dips to Early tests to determine if chlorine diox- percent. Thus, using this paper should be an control certain microbes. In the past, the ide gas released from sachet delivery sys- effective means of keeping Botrytis spores industry has not commercially utilized tems could control Botrytis in shipping boxes that are present nearly everywhere sur- gaseous versions with floral crops until Sea- showed mixed results. In addition, rounding plant production and man Paper, Otter River, MA, and BASF, researchers encountered phytotoxicity when handling from infecting flowers during ship- Ledgewood, NJ, developed a paper delivery chlorine dioxide levels got too high, resulting ping. Retailers can expect best results for system for this gas. in light-colored or bleached spots on the flower storage and/or transit times of seven flowers’ petals and days or less. In addition, the paper should stems. Researchers not come in direct contact with flowers — believe this is the only the bunch sleeves. result of the gas accu- In another test, some non-chlorine diox- mulating in areas of ide paper-treated cultivars developed no damaged tissue where symptoms, thus, the chlorine dioxide-releas- moisture is present. ing paper would have no effect, while some Researchers estab- cultivars developed very severe symptoms. lished subsequent Out of the 13 cultivars that exhibited symp- tests to quantify toms, chlorine dioxide paper significantly Botrytis control on reduced Botrytis symptoms on five. cut roses held in ship- Retailers will probably not be able to con- ping boxes using new trol any infections that have started before chlorine dioxide- exposure to the chlorine dioxide releasing releasing paper for- paper. In short, they should view using chlo- mulations. In the sec- rine dioxide-releasing paper as an ond study, Chase and policy to reduce the chances of increased

Photo courtesy of Forsite Diagnostics, Ltd. this writer evaluated diseased development, but not seen as a The Botrytis “pregnancy test” is simple and easy to use. two formulations of cure-all. pb

104 PRODUCE BUSINESS • DECEMBER 2008 RETAIL By Dave Diver PERSPECTIVE Cash Credit And Leverage

ationally known pollster John Zogby has spent most of Throughout most of the past century, the battle between cash his professional career interpreting public-opinion sur- and credit advocates has raged. Perhaps the bible for conservative veys from consumer preferences to cultural mores. consistent finance has been Benjamin Graham and David Dodd’s Recently, his analytical interpretation placed each gen- Security Analysis, first published in 1934, during the middle of the eration of those born between 1926 and 1990 into four Depression. It states, “One of the effects of a highly leveraged capi- Ndistinct cultural and economic groups. tal structure is to make the market value of the company largely Unsurprisingly, the generation born prior to 1945 was most like- unpredictable. In a favorably financed climate, a company might be ly to defer instant gratification. By contrast, the following three gen- valued at a premium, but when sentiment is adverse, it might just erations have become increasingly materialistic with steadily grow- as easily sell at a discount. In a speculative market, investors pay ing reliance on the use of credit. more attention to return on equity and the implied growth Having grown up in that first generation, I still retain its lessons. prospects than to the high risk.” When the economic environment In early 1941, did not exist and my family had lit- changes, the opposite can be equally true. No wonder Warren Buf- tle money in the bank to pay for my stay. When I came fett chose Benjamin Graham as his mentor and became one of the home, my father sold a truckload of wheat to country’s most successful investors. pay the surgeon and the hospital bills. We were During college, my financial planning among the lucky few. My father repeatedly told courses featured cash-flow accounting and val- me the only time you should borrow money is uation as well as present and future value cal- to buy real estate or start a business — a stan- culations. My 50-plus-year-old Financial Hand- dard he followed after World War I when he Assuming more book principals and formulas are still relevant purchased a farm and worked 24/7 to pay back and useful today. However, during the mid- the loan. Undoubtedly, the events of July 8, risk than a 1980s, mortgage-bond traders devised a 1932, when the Dow Jones Industrial Average supplier, grower, method of lending without using capital, which reached the lowest level of the Great Depres- marketer, became the heart of securitization, a shadow sion, strongly influenced those beliefs. banking system to be popularized in Securitiza- When I was entering the workforce, credit retailer or tion of Credit by Juan Ocampo and James A cards were just starting to make an appearance, consumer can Rosenthal. In recent years, graduate-school and most people who had them regularly paid financial engineers developed increasingly the entire monthly statement. As the years financially sophisticated computer programs, created a passed, people, companies and governments afford provides process anyone could sell and powered growth found they could speed up the process of potential for around the world through leverage few people instant gratification, acquisition and profitable understood. reselling with the expansion of credit. For unintended In the ensuing years, increasing amounts of decades, the process worked its magic. consequences. credit became the engine of growth for individ- In some instances, major industries relied uals, companies and governments. The result on cheap credit for consumers as the primary has been conspicuous consumption, overex- tool to overextend capacity and keep volume pansion and taxation growth to pay for deficit growing. Since 1988, U.S. consumer debt tripled spending. Now, the credit leveraging is con- to today’s $2.6 trillion. Without this credit tracting with an unprecedented and catastroph- expansion, automobile factories would have ic amount of wealth wiped out. been forced to close, homebuilders retrench and in each case, the The balance between cash, credit and leverage is really a matter ripple effect would have resulted in multiple suppliers losing multi- of risk assumption with its consequences. “Globalization has been ple orders. likened to two institutions we know as democracy and marriage. As time passed, a new element came into existence: leverage. It Both institutions at times can be problematic, but the alternatives wasn’t the prudent leverage one traditionally experienced by bor- can be worse,” reports former U.S. Treasury official Mark DeLand. rowing for working capital or capital equipment. Instead, it includ- Moving from sound business fundamentals to get-rich-quick pro- ed various financial-related entities, which, in recent years, lever- grams brought us to where we are today. Assuming more risk than aged assets 40 times and higher in limited instances. One notable a supplier, grower, marketer, retailer or consumer can financially observed, “Assuming risk one can’t repay punishes everyone. afford provides potential for unintended consequences. Everyone Deleveraging is like divorce.” has a choice and a responsibility. pb

DECEMBER 2008 • PRODUCE BUSINESS 105 VOICE OF By Gary Caloroso THE INDUSTRY Courting Consumer- Affairs Advisors

s a public relations/marketing communications profes- Many retailers support PFK because it is a great cause-marketing sional working in the produce industry, I consider program they can customize and integrate into their existing corpo- myself quite fortunate to have developed meaningful rate initiatives. Thanks to PFK partner retailers and sponsors, the relationships with supermarket-chain consumer-affairs produce industry has raised more than $2 million for the Children’s professionals over the years. Miracle Network and PBS Kids since 2002. AIt all started with a crisis. More than a decade ago, I flew to Vir- At the conference, many presenters shared new information ginia for a meeting of Food Marketing Institute’s (FMI) Consumer regarding health and product usage. Author/registered dietitian Affairs Committee to discuss a labor crisis facing California’s straw- David Grotto talked about the nutritional benefits of Chilean Hass berry industry. As we worked together on mitigating the crisis (and avocados. Trained by Second City in Chicago, Grotto uses humor to others since including food safety), I better recognized the impor- communicate health messages to consumers. His 101 Foods That tant and valuable role consumer-affairs professionals play in com- Could Save Your Life is a must-read for everyone in the industry. municating directly with the consumer. As a former American Dietetic Association media spokesperson, ’s Ester Peterson pioneered the world of retail chain Grotto really connects with retailers. During the seminar, attendees consumer affairs. A former special assistant for learned about using a plastic storage bag to cre- consumer affairs to President Lyndon Johnson, ate a Chilean Hass avocado spread that can in 1971 the late Peterson helped Giant become Supermarket replace butter or mayonnaise. the first U.S. retailer to roll out nutritional label- You can sponsor a reception as did the Geor- ing. Her strong consumer advocacy helped chains and gia Pecan Commission. Retailers learned pecans supermarkets develop a framework for building produce contain more antioxidants than any other nut. trust with consumers. Consumers trust retailers suppliers are Attendees also learned important facts about if they know their supermarket chain truly Vidalia onions through the Vidalia Onion Com- cares about them and their families. ultimately after mittee’s in-conference trivia contest. Over the years, many retail consumer- the same thing These gatherings are a big reason why com- affairs advisors have told me they love the pro- municating with retail consumer-affairs profes- duce industry because it gives supermarkets a — increased sionals is important — they are great messen- platform to communicate positive health mes- consumption of gers for the produce industry. sages to their consumers through their newslet- fruits and Whether you start with the annual October ters, Web sites and other direct-to-consumer conference or approach each chain directly, . Retailers want to partner with pro- vegetables. you should consider partnering with retail con- duce suppliers in building consumer demand. sumer-affairs advisors in future marketing and That’s where we come in. In addition to communications endeavors. If you have a new working with our friends in produce departments, I strongly sug- consumer-friendly product, they are a crucial asset. gest produce suppliers and commodity boards seek to partner with Retailers are typically open to new research findings and excit- retail consumer-affairs advisors, registered dietitians and communi- ing recipes they can utilize in their consumer communications ty-relations, marketing and communications/public affairs/public vehicles. Obviously, it is easier to integrate your messages with a relations professionals. chain if you already have a planned promotion with the retailer’s Here’s a great way to start. Attend — and perhaps sponsor — produce department. FMI’s annual Consumer Affairs, Communications and Community Will it cost you money? It depends on the retailer. It never hurts Relations Seminar. It’s a great way to learn about the opportunities to ask retailers to become partners with us. At the end of the day, supermarket chains face every day. Dagmar Farr, FMI’s group vice supermarket chains and produce suppliers are ultimately after the president of legislative and consumer affairs, leads this group. Next same thing — increased consumption of fruits and vegetables. year’s conference will be in October (after PMA’s Fresh Summit) Retailers have a strong commitment to offering produce because but the location and dates will not be determined until early 2009. they understand its profitability, but they are also keenly aware pro- During this year’s FMI conference in October in Boston, I had duce plays an integral part in the daily lives of consumers. the privilege of speaking to retailers about one of my favorite topics Consumers trust retail consumer-affairs advisors and I trust — Produce for Kids (PFK), which promotes the benefits of healthful them, too. They are great allies for the produce industry and I eating and supports worthy causes for children. wholeheartedly embrace what they do. pb

Gary Caloroso is vice president of Sahlman-Williams, Inc., Tampa, FL, and a member of the PRODUCE BUSINESS 2008 40-Under-Forty class.

106 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 30 Philippe Binard is the EUROPEAN secretary general of Freshfel MARKET Europe, the European association of fresh produce, importers, exporters, wholesalers, distributors and retailers, Q&AWith based in Brussels, Belgium This is the second part Philippe Binard of a 2-part interview.

Q: With the proposed Pan-European School Fruit Scheme, reached on the budget, if it is not used in full or implemented prop- is the European Union looking to target certain countries erly, efforts will not be realized. It is worth insuring the program is where the need is greater from a health or cost standpoint? secured and carried on to the maximum of its possibility, and is A: The program is open to all member states. Those already operating with the largest chance of success for the coming years. implementing programs should not substitute current E.U. money, After two or three years, an evaluation of the policy may result in but use it to grow the program. It might be surprising when you the program being discontinued. examine the health data. The worst in Europe is mainly in the Unit- Such a program could have a snowball affect, changing eating ed Kingdom — where obesity has become an important problem — habits and consumption at home. This has been demonstrated with and in southern European countries, normally famous for the Food Dudes [in Ireland], where parent involvement is an important Mediterranean diets rich in fruits and vegetables, where the prob- element. Not only are kids sharing what they’ve learned in school lem seems to be insidious. There is not an effort by the European with the family, but they are also asking for fruits and vegetables, Union to decide; it is up to the sector in each of the countries to and insisting parents buy produce during the grocery-shopping trip. authorize to do the program based on local discussions. Editor’s note: On Nov. 18, 2008, The European Parliament Commit- Q: Is there an effort to involve supermarkets and food ser- tee on Agriculture unanimously adopted the €90 million budget for the vice operators in these schemes? E.U. School Fruit Scheme. Its report included an amendment to increase A number of programs in supermarkets market to children, the budget to €500 million, but despite this, the Commission has offering smaller sized product designed for them, some promoting remained steadfast on €90 million for the first three years and evaluat- healthy lunch boxes that include a banana or apple. Maybe there ing the program before expanding the budget. could be a program developed by supermarkets that ties in directly with the school’s approach. In the , for example, Q: What steps will Freshfel take now to help push this pro- Morrisons is already starting to link the school campaign with action gram forward and build produce consumption across Europe? in the store to encourage children to take produce. I’ve seen this A: We acted at the early stage of policy-making — what was an interaction done well in as well. idea turned into a concrete proposal. Freshfel has been active at var- With the foodservice sector there is much potential to build off ious levels to address overall stagnation of fruits and vegetables in the free fruit and vegetable program, perhaps delivering healthful most countries. meals at schools and maybe adapting serving sizes. Actions are The role we have now is double; on one hand to make sure there needed to provide the school kitchen with the right equipment for is a platform to exchange best practices and facilitate the networking preparation of healthful meals. It’s not only about making sure prod- of best practice at national levels. Learn what works and what uct is physically available, but also that all the different campaigns doesn’t work and contribute in this exchange of ideas. It is impor- are implemented to spread awareness and education. In other tant to have good networking with experts in the sector, those who research, we found some children in urban environments didn’t grow and distribute produce, those in education, environment and know where milk came from. It’s important to bring children closer health need to communicate with each other. There must be a good to nature and teach them about the production process, educating link between all the different elements, but so far there hasn’t been the youngest on why it is good to eat strawberries or clementines. so much networking. Then we’ll have a role to play in distribution and logistics strate- Q: In a broader sense, does Freshfel work on unified mar- gies. We have to make sure we find the best way for delivering the keting and promotion efforts? product and get those who are involved in good programs to A: When you look at Europe as it is today, there is still a lot of exchange views on the most effective ways to get this done. Then fragmentation in the market. It requires different approaches to talk provide input with the European Union on implementation rules. to a German consumer or a Spanish consumer. We try to have the On a technical level, there are a number of things that need to be possibility for local discussion of E.U. policy and help pass on views discussed and integrated into the implementation legislation. Our to policy makers in Brussels and facilitate communication long role is far from over. term. We recognized that it could be beneficial to have a single logo and image to promote a common goal and we’ve been in the Q: You’ve pointed out that once the programs are under- process of developing one in the last year. At the same time the suc- way, it will be critical to evaluate progress in order to secure cess of these programs will hinge on the way they are implemented, continued funding. monitored and evaluated at the local level. A: So many people have been supporting the idea that this is an From an interview by Mira Slott in Jim Prevor’s Perishable Pundit, important program to change behavior. Whatever decision is Oct. 17, 2008.

108 PRODUCE BUSINESS • DECEMBER 2008 Reader Service # 47 Blast from the Past hen the four Streef brothers opened Streef Produce, Inc., in 1977, Peter Streef was just graduating high school. More than 30 years later, Princeton, ON, Canada-based Streef Produce is the only farm- based corporation at the Ontario Food Terminal in Toronto, ON. W “You can say potato farming runs in our veins,” states Streef. His uncle and grandfather, Pete and Opa Boula, are shown in this 1928 photo with their harvest in Southern Holland. Streef’s parents came to Canada in the 1950s and bought a 15-acre farm in 1960. Streef’s 26-year-old nephew Chris is taking on the role of general manager as the company continues to successfully operate on the market. “We’ve had a tough year,” notes Peter Streef, “but we owe it to the people who afforded us this lifestyle to keep it growing.” The Blast from the Past is a regular feature of PRODUCE BUSINESS. 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]

INFORMATION Receive supplier information fast using the Produce Business Information Showcase. Here’s How: SHOWCASE 1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the Reader Service numbers that correspond to the ad and the information showcase. 2) Contact the advertiser directly via the Web site, e-mail, phone or fax listed in the ad.

DECEMBER 2008 COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX The Alphas Company, Inc...... 84 ...... 22 ...... 617-884-5921 ...... 617-884-5932 Malena Produce, Inc...... 46 ...... 73 ...... 520-281-1533 ...... 520-281-2156 Apache Produce ...... 47...... 2 ...... 520-281-2282 ...... 520-761-1829 Mann Packing Company, Inc...... 9 ...... 64 ...... 800-884-6266 ...... 831-422-5171 Apio, Inc...... 35 ...... 43 ...... 800-454-1355 ...... 805-343-6295 Mann Packing Company, Inc...... 72-73 ...... 65 ...... 800-884-6266 ...... 831-422-5171 Awe Sum Organics, Inc...... 28 ...... 69 ...... 831-462-2244 ...... 831-462-2552 The Marketsol Group, LLC ...... 44 ...... 10 ...... 956-782-9933 ...... 956-782-9937 Blue Book Services ...... 107 ...... 30 ...... 630-668-3500 ...... 630-668-0303 T. Marzetti Company ...... 29 ...... 32 ...... 614-846-2232 ...... 614-842-4186 J. Bonafede Co., Inc...... 86 ...... 18 ...... 617-884-3131 ...... 617-889-2929 T. Marzetti Company ...... 39 ...... 33 ...... 614-846-2232 ...... 614-842-4186 C&D Fruit & Vegetable Co., Inc...... 65 ...... 70 ...... 800-899-9175 ...... 941-747-8895 Miatech ...... 38 ...... 57 ...... 800-339-5234 ...... 503-659-2204 Cal-Harvest...... 68-69 ...... 51 ...... 559-582-4000 ...... 559-582-0683 MIXTEC Group...... 90...... 5 ...... 626-440-7077 ...... 626-440-1557 Calixtro Distributing...... 48 ...... 71 ...... 520-281-3432 ...... 520-281-3438 Mutual Produce Corporation ...... 92...... 617-889-0035 ...... 617-884-2544 Capital City Fruit Co., Inc...... 96 ...... 40 ...... 515-981-5111 ...... 515-981-4564 Mutual Produce Corporation ...... 82 ...... 13 ...... 617-889-0035 ...... 617-884-2544 John Cerasuolo Co., Inc...... 82 ...... 20 ...... 800-875-8286 ...... 617-884-8272 Northern Plains Potato Growers Assn...... 21 ...... 42 ...... 218-773-3633 ...... 218-773-6227 Chilean Avocado Importers Association ...... 55 ...... 55 ...... 202-626-0560 Nunhems USA...... 33...... 6 ...... 208-674-4146 ...... 208-674-4005 Coast To Coast Produce Co...... 85 ...... 35 ...... 877-836-6295 ...... 671-381-0067 Olivia’s Organics ...... 86 ...... 36 ...... 617-884-1816 ...... 617-884-4919 Community Suffolk, Inc...... 88 ...... 56 ...... 617-389-5200 ...... 617-389-6680 Pack-Right LLC ...... 45 ...... 16 ...... 888-706-2400 ...... 520-377-2874 Cooseman’s Boston, Inc...... 88 ...... 67 ...... 617-887-2117 ...... 617-887-2579 Pandol Brothers, Inc...... 28 ...... 61 ...... 661-725-3145 ...... 661-725-4741 Crowley Maritime Corp...... 51 ...... 62 ...... 800-CROWLEY Peri & Sons Farms ...... 20 ...... 60 ...... 775-463-4444 ...... 775-463-4028 Curry & Company ...... 57 ...... 72 ...... 503-393-6033 ...... 503-393-6085 Phillips Mushroom Farms ...... 20 ...... 11 ...... 800-722-8818 ...... 610-444-4751 Dave’s Specialty Imports, Inc...... 28 ...... 25 ...... 954-753-8536 ...... 954-346-7536 Plain Jane ...... 47...... 2 ...... 520-281-2282 ...... 520-761-1829 Del Monte Fresh Produce ...... 112 ...... 59 ...... 800-950-3683 ...... 305-520-8495 Premium Produce Distributors, Inc...... 48 ...... 38 ...... 520-281-4224 ...... 520-281-0910 Dole Fresh Fruit Company ...... 2 ...... 53 ...... 800-356-3111 ...... 818-879-6628 Produce for Better Health Foundation ...... 78 ...... 49 ...... 302-235-2329 ...... 302-235-5555 Dole Fresh Vegetable Co...... 70-71 ...... 54 ...... 800-333-5454 ...... 831-754-5243 Red Blossom Farms, Inc...... 74-75 ...... 75 ...... 805-981-1839 ...... 805-981-1842 dProduce Man Software ...... 87 ...... 58 ...... 888-PRODMAN ...... 650-712-9973 Rene Produce Distributors, Inc...... 48 ...... 68 ...... 520-281-9206 ...... 520-281-2933 Duda Farm Fresh Foods, Inc...... 54...... 3 ...... 800-342-DUDA ...... 561-978-5705 Saven/OSO Sweet ...... 52 ...... 12 ...... 231-946-9696 ...... 231-946-1420 East Coast Brokers & Packers, Inc...... 111 ...... 48 ...... 800-557-7751 ...... 863-869-9850 Seald Sweet International ...... 98 ...... 34 ...... 800-237-7525 ...... 772-569-2168 Eastern Propak, LLC ...... 54...... 7 ...... 856-881-3553 ...... 856-243-0154 Arthur G. Silk, Inc...... 89 ...... 17 ...... 617-884-1370 ...... 617-884-7693 Eaton & Eustis Co...... 87 ...... 19 ...... 617-884-0298 ...... 617-884-2611 State Garden, Inc./Olivia’s ...... 86 ...... 36 ...... 617-884-1816 ...... 617-884-4919 Edinburg Citrus Association ...... 62 ...... 44 ...... 956-383-6619 ...... 956-383-2435 S. Strock & Co., Inc...... 81 ...... 23 ...... 617-884-0263 ...... 617-884-7310 Joseph Fierman & Son, Inc...... 17 ...... 27 ...... 718-893-1640 ...... 718-328-3738 Sunfed ...... 41...... 1 ...... 866-4-SUNFED ...... 529-761-1446 Fisher Capesapn ...... 28 ...... 26 ...... 800-388-3074 ...... 514-737-3676 Sunlight Int’l. Sales ...... 19 ...... 46 ...... 661-792-6360 ...... 661-792-6529 Florida Department of Agriculture ...... 97...... 4 ...... 850-488-4303 ...... 850-922-0374 Sunny Fresh Citrus ...... 54 ...... 77 ...... 772-770-0207 ...... 772-770-0209 Frank’s Distributing Co...... 43 ...... 21 ...... 520-761-1578 ...... 520-281-2425 SunnyRidge Farm, Inc...... 66 ...... 45 ...... 863-299-1894 ...... 863-299-7794 Fresh Partners AB ...... 96 ...... 31 ...... 46-8-742-1215 ...... 46-8-742-6201 Tanimura & Antle, Inc...... 5 ...... 41 ...... 800-772-4542 ...... 831-455-3915 Garden Fresh Salad Co., Inc...... 83 ...... 15 ...... 617-889-1580 ...... 617-889-3035 Target Interstate Systems, Inc...... 91 ...... 79 ...... 800-338-2743 ...... 800-422-4329 Al Harrison Co. Dist...... 46 ...... 80 ...... 520-281-1222 ...... 520-281-1104 P. Tavilla Co., Inc...... 84 ...... 14 ...... 617-884-9100 ...... 617-884-2696 Idaho-Eastern Oregon Onion Promotion Committee . . 7 ...... 29 ...... 888-466-4667 ...... 208-722-6582 Thomas Produce Sales, Inc...... 48 ...... 76 ...... 520-281-4788 ...... 520-281-2703 Inline Plastics Corp...... 37 ...... 39 ...... 800-826-5567 ...... 203-924-0370 To-Jo Fresh Mushrooms, Inc...... 38 ...... 78 ...... 610-268-8082 ...... 610-268-8644 KPG Solutions, Inc...... 96 ...... 66 ...... 407-331-5151 ...... 407-331-5158 Turbana Banana Corp...... 76-77 ...... 63 ...... 800-TURBANA ...... 305-443-8908 LGS Specialty Sales, Ltd...... 53...... 8 ...... 800-796-2349 ...... 718-542-2354 Uncle Matt’s Organic ...... 54 ...... 24 ...... 866-626-4613 ...... 352-394-1003 LGS Specialty Sales, Ltd...... 54...... 9 ...... 800-796-2349 ...... 718-542-2354 United Fresh Produce Association ...... 109 ...... 47 ...... 202-303-3400 ...... 202-303-3433 Lisa Inc...... 48 ...... 28 ...... 520-281-1863 ...... 520-281-2848 Wishnatzki Farms ...... 64 ...... 37 ...... 813-752-5111 ...... 813-752-9472

110 PRODUCE BUSINESS • DECEMBER 2008 800-557-77 51 or 863-425- 3500 With theproper blendofthebesttraditionandstate-of-the-arttechnology, Batista MadoniaJr. we takegreat prideinproviding besttomatoes. ourcustomerswiththevery Sales Manager G ROWERS Evelyn M.Madonia,ExecutiveVice President/Secretary-Treasurer Year-round—from PallettoPlate,thechoiceisclear. • Batista MadoniaSr. President &CEO P ACKERS Rosemary Madonia, Rosemary Comptroller • B ROKERS • Fax: 863-869-9850 • S All Growing Operations HIPPERS Stephen Madonia

Reader Service # 48 Reader Service # 59