Produce Business October 2012

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OCT. 2012 • WWW.PRODUCEBUSINESS.COM • VOL. 28 • NO. 10 • $9.90 INSIDE: THE PUNDIT LOOKS AT THE MANGO RECALL WHOLESALER’S SURVIVAL GUIDE •CONSUMER PACKAGING SALAD TRENDS •RED RIVER VALLEY POTATOES SAN LUIS VALLEY POTATOES •FLORIDA FALL PRODUCE IMPORTED BERRIES •CALIFORNIA CITRUS •MEXICAN IMPORTS •APPLES REGIONAL PROFILE:DETROIT •ORGANIC CONSUMER GROWTH •PECANS PMA AISLE BY AISLE BOOTH REVIEW DOLE Veg.qxd:Ad 9/25/12 4:06 PM Page 1 TOC.qxd:Layout 1 10/1/12 11:50 AM Page 1

OCTOBER 2012 • VOL. 28 • NO. 10 • $9.90

COVER PHOTO COURTESY OF FRESH HEALTHY VENDING p.58    26 PRODUCE FINDS A HOME IN 38 WHOLESALER’S SURVIVAL GUIDE: 10 WAYS PRODUCE “MIDDLEMEN” PREVAIL NON-TRADITIONAL OUTLETS Wholesalers thrive by emphasizing strengths and adding new services. From convenience stores and gas stations to drug stores and vending machines, 52 CONSUMER PACKAGING: FIVE THINGS TO CONSIDER produce is popping up in a number of With consumer and retailer requirements rising, the novel places. packaging industry is making strides to meet their needs. 58 SALAD CATEGORY CONTINUES TO EXPAND  New innovations have helped expand the packaged salad category, leading to more sales opportunities. 12 THE FRUITS OF THOUGHT Florida-Mexico Tomato Battle 62 RED RIVER VALLEY GROWERS CONFIDENT Distracts From A Focus On Consumers IN PROVIDING QUALITY RED POTATOES Retail promotions on the table, despite challenges from Mother Nature. 154 RETAIL PERSPECTIVE Back ToBasics 67 GROWERS PREDICT A SOLID SEASON FOR SAN LUIS VALLEY POTATOES Good crop quality and increasing acreage result in good volume to meet buyer needs. 156 EUROPEAN MARKET European Economic Crisis 72 FLORIDA FALL PRODUCE SHINES Transforms Shopping Behavior Florida produce adds color, flavor and nutrition to fall menus. 158 VOICE OF THE INDUSTRY 79 IMPORTED BERRIES HELP MAINTAIN A YEAR-ROUND SUPPLY Earth-Safe Soil: Industry Once the domestic berry supply has finished, retailers can Opportunity, Planet Necessity rely on high quality imports to keep consumers very happy. 85 CALIFORNIA CITRUS PROVIDES A SOLID RING FOR PRODUCE DEPARTMENT California Navel oranges, along with Clementines and p.85 Mandarins, are some of California’s most beloved fruit. p.72

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.

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OCTOBER 2012 • VOL. 28 • NO. 10 • $9.90

  

8 THE QUIZ

10 WASHINGTON GRAPEVINE

14 TRADE SHOW CALENDAR

16 PRODUCE WATCH

24 RESEARCH PERSPECTIVES p. 125 p. 142

25 COMMENTS AND ANALYSIS  MERCHANDISING REVIEWS 160 INFORMATION SHOWCASE 125 Apples: 15 Thoughts To Help In A Tough Year Despite weather woes, apple growers/shippers 162 BLAST FROM THE PAST around the country remain positive for future seasons. REGIONAL MARKET PROFILE 138 Spotlight On Detroit Despite its economic hardships, the Detroit region is known p. 162 for independent retailers that cater to its diverse population. ORGANIC PRODUCE MARKETING 142 Make The Most Of Demographic Opportunities For Organic Growth The organic category continues to grow in more than pocket niches around the country. DRIED FRUIT AND NUTS 150 Halves Or Pieces, Pecans Sell Well In Produce With dedicated merchandising efforts and a bit of consumer education, paying attention to pecans can go a long way toward boosting sales.   20 FROM THE PAGES OF THE PERISHABLE PUNDIT Putting Mango Recall Into Perspective

115 SPOTLIGHT ON MEXICAN IMPORTS (PART II): Mexican Tomato Importers Make Appeal For Market Access Tomatoes represent over $800 million FOB and 20 to 25 percent of the value of produce brought into Nogales.

91 FLORAL MASTERS OF MERCHANDISING

99 PMA AISLE BY AISLE BOOTH REVIEW

p. 91 p. 99

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PRODUCE QUIZ

THIS MONTH’S WINNER Carlos A. Ramirez OCTOBER. 2012 • VOL. 28 • NO. 10 • $9.90 E Foods Inc. P.O. Box 810425 • Boca Raton • FL 33481-0425 Produce Sales Broker Phone: 561-994-1118 • Fax: 561-994-1610 [email protected] Altamonte Springs, FL PRESIDENT &EDITOR-IN-CHIEF As a little boy in Hon- all over the country, as well as the Caribbean James E. Prevor duras, Carlos Ramirez used and Central America,” he says. “Because of my [email protected] to work with his father on relationships with grower/shippers, I get great PUBLISHER/EDITORIAL DIRECTOR the family farm. “I always deals, and then am able to pass those on to Ken Whitacre remember him making fresh my wholesaler clients.” [email protected] pumpkin soup in the fields,” Ramirez recol- Prior to moving to Florida five years ago, lects. “Even though my father was a cartogra- Ramirez started receiving PRODUCE BUSINESS SPECIAL PROJECTS EDITOR pher for the government, he also sold his fresh when he worked as a senior buyer with BEC Mira Slott fruit and vegetables for extra money.” For Car- Corp. in Puerto Rico. “I’ve been reading the [email protected]

los, produce was in the blood, and he went on magazine for 15 years; it’s so important to ASSOCIATE EDITOR to earn a Masters Degree in agricultural busi- stay informed,” he says. “It keeps me aware Jennifer Leslie Kramer ness from Florida A&M University. of all the different produce companies and [email protected] As a produce sales broker for E Foods Inc., what they are doing. It also allows me to go EXECUTIVE ASSISTANT he is responsible for sales and procurement of back to my customers and suggest better Fran Gruskin fresh produce. “I have a number of clients from ways to merchandise their produce.” [email protected]

How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are simple: Read PRODUCTION DIRECTOR through the articles and advertisements in this issue to find the answers. Fill in the blanks corresponding to the Diana Levine questions below, and either cut along the dotted line or photocopy the page, and send your answers along with a [email protected] business card or company letterhead to the address listed on the coupon. The winner will be chosen by drawing from the responses received before the publication of our December issue of PRODUCE BUSINESS. The winner must agree to PRODUCTION LEADER submit a color photo to be published in that issue. Jackie Tucker

WIN A DIGITAL ICELESS WINE COOLER PRODUCTION DEPARTMENT SUNSHINE GORMAN Always have a chilled bottle of wine at your fingertips with an FREDDY PULIDO iceless wine cooler. A built-in database features 40 varieties of red, white and sparkling wine to adjust the bottle to its proper serving TRADE SHOW COORDINATOR temperature for the optimum flavor. Includes a countdown timer and Jackie LoMonte a handy quick chill feature. [email protected]

EDITORIAL INTERN QUESTIONS FOR THE OCTOBER ISSUE Madeline Mesa [email protected] 1) What is the email address for retailers to order POM Wonderful display bins?______CONTRIBUTING EDITORS ______Carol Bareuther, Julie Cook Ramirez, Paula Hendrickson, Bob Johnson, 2) What states do Paramount Citrus’ grapefruits come from? ______Jodean Robbins, Barbara Robison, Lisa White

ADVERTISING 3) What is the PMA booth number for Village Farms? ______Eric Nieman, Associate Publisher [email protected] ______Wendy Jones [email protected] 4) How big is the refrigerated space at Maurice A. Auerpak Inc.? ______Sandy Lee [email protected] Bill Martin 5) Name three companies that will be at the “Fresh From Florida” pavilion at PMA Fresh Summit. [email protected] ______Ellen Rosenthal [email protected] 6)What is the address for Red Blossom Farms? ______Joel Schwartz [email protected]

FLORAL DEPARTMENT MARKETING E. Shaunn Alderman This issue was: J Personally addressed to me J Addressed to someone else [email protected] Send insertion orders, payments, press releases, Name ______Position ______photos, letters to the editor, etc., to PRODUCE BUSINESS, P.O. Box 810425 Boca Raton, FL 33481-0425 Company ______PH: 561.994.1118 FAX: 561.994.1610

PRODUCE BUSINESS is published by Phoenix Media Network, Address ______Inc. James E. Prevor, Chairman of the Board P.O. Box 810425, Boca Raton, FL 33481-0425. City ______Entire contents © Copyright 2012 Phoenix Media Network, Inc. All rights reserved. State ______Zip ______Printed in the U.S.A. Publication Agreement No. 40047928 Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: OCTOBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

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President Obama And Governor Romney Respond To United Fresh

By Shelby Rajkovich, Communications Manager, United Fresh Produce Association

nited Fresh has released exclusive recently had bipartisan support — that would Act,the next administration will set the tone for policy statements from the invest in border security, hold employers how we move forward, and the industry is defi- Ucampaigns of President Obama accountable, demand responsibility from nitely watching closely.” and Governor Romney on top produce undocumented immigrants while creating a The Obama response highlighted the steps industry priorities ahead of the Washington path to legal status, and reform the legal immi- his administration has taken to reform the Public Policy Conference, the produce gration system to attract the best and brightest nation’sfood safety laws,including bolstering the industry’s most powerful public policy event. and keep families together.” FDA’sresources,authority and tools.“Effectively United posed questions on behalf of the The Romney campaign focused on managing risk is important to all producers,and industry to both campaigns on immigration, reforming the visa process for seasonal having an acceptable food safety program is in regulation, the Farm Bill, taxes, food safety and workers: “As president, Mitt Romney will the best interest of consumers, buyers, and the nutrition. The statements reveal each candi- make the system for bringing in temporary farmers themselves,”said the statement. “And I date’s intended path forward on agriculture agricultural workers and other seasonal am committed to working to ensuring that food policy, and mark the contrasts and similarities workers functional for both employers and safety regulations do not place an unreasonable between the two in the final stretch to the pres- workers. He will get rid of unnecessary burden on the food industry.” idential election on November 4. requirements that delay issuance of a visa, and The Romney campaign is advocating for “The candidates took the opportunity to preventative food safety practices which are specifically address the concerns of the “best developed by growers, handlers, proces- produce industry by responding to our The statements reveal sors and others in the supply chain,”according submitted questions,” says Ray Gilmer, to the statement. “Governor Romney believes United Fresh vice president of communica- each candidate’s the FDA must collaborate with industry, in tions. “These statements give members of intended path forward cooperation with state agencies and academia, our industry the information to make an to develop specific guidance for the commodi- informed decision and they underscore on agriculture policy, ties most often associated with food-borne how important the produce industry is in and mark the contrasts illness outbreaks. A Romney Administration this race.” will prioritize this type of cooperation and and similarities between collaboration with industry on the part of all Tough Talk On Immigration the two. agencies charged with protecting public health.” The submitted questions echo the results of United Fresh’s Impact Produce Policy Straw Clash Of Nutrition Policies Poll, which revealed the issues that the produce he will speed the processing of applications. The campaigns also tackled nutrition, an industry ranks as its top priority. The poll A legal immigration system that works will area where perhaps the starkest contrast found that 73 percent of United Fresh members provide a lawful alternative to workers who between the two candidates emerged. The rank farm labor availability as one of their Top would otherwise enter illegally and employers Obama statement touted improvements to Three concerns,so it’s no surprise that the pres- who face the choice of either turning to illegal child nutrition programs, notably the reautho- idential candidates talked tough on the topic. labor or reducing operations.” rization of the Healthy, Hunger-Free Kids Act In the face of an ongoing labor crisis, the fresh and First Lady Michelle Obama’s Let’s Move fruit and vegetable industry relies on a strong, Commitment To Food Safety Salad Bars to Schools Initiative, of which United stable workforce and is in need of a compre- Food safety also topped the poll results,with is a founding partner. The Romney campaign hensive immigration reform to remain viable. 72 percent of respondents in United’s straw poll admitted that obesity is a “public health crisis,” Both Romney and Obama agreed that the indicating it as a top priority. “The fresh but also seemed to offer a more hands-off current system is “broken.” produce industry has taken major steps in the approach, saying, “The federal government The statement from the Obama campaign past few years to ensure that we’re providing the should not dictate what every American eats.” read: “I believe in comprehensive reform that safest product to consumers,” remarks Robert The candidates’ full responses on immi- strengthens our economy and reflects our Guenther, United’s senior vice president of gration, agriculture regulation, the Farm Bill, values as a nation of laws and a nation of immi- public policy.“As we look forward to the imple- taxes and nutrition can be found online at grants. I support legislation — that until mentation of the Food Safety Modernization www.unitedfresh.org.

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THE FRUITS OF THOUGHT FLORIDA-MEXICO TOMATO BATTLE DISTRACTS FROM A FOCUS ON CONSUMERS

By James Prevor President & Editor-in-Chief

he dispute between Florida and is grown, not where it is consumed. A large Chilean shipper will design T Mexican tomato growers, along with a program involving millions of cases of fruit and will allocate their importers, has turned into quantities to Europe, North America, Japan, the Middle East, etc., long something of a brawl. Unfortunately, the way before the season even starts. Much of this fruit will be sold on a the issue has been framed is confusing the straight commission basis. Although some adjustments will be made situation, not clarifying the issues. during the season based on market prices, these changes are limited by Florida started by asking to terminate the the need to stay in markets for the long term and the fact that each suspension agreement, which has governed market has limited capacity. It is great news for producers that the the sales of tomatoes for the past 16 years. To market is strong in Scandinavia, but relatively small additional an outsider, this implies that the Florida shipments will make it weak. growers do not want the government dictating minimum prices. So they Many countries grow produce or specific products for the purpose come off as pro free trade. of export. The domestic market on many of these products is simply In contrast, the Mexicans inconsequential. So to compare opposed ending the suspension domestic prices to prices in the agreement. Since the agreement United States is meaningless. restricts the Mexicans from selling Legal efforts to impose duties may buy The political battle is into the United States at prices a few years but, in the end, they are a interesting. In the aftermath of the below those approved by the failed talks to merge United and Department of Commerce, an distraction from the imperative of PMA, one sees the great difficulty outsider would assume that the flavor, quality and service. for any national trade association Mexicans are opposed to free trade. to always represent the diverse The reality is that the situation grower base. After all, Florida is the opposite. The Florida tomato shippers are pushing for growers are intending to file a the government to impose high new anti-dumping complaint as soon as possible. If they win, and they duties on tomatoes imported from Mexico, but others, say Washington probably will, the U.S. government would impose heavy duties on apple shippers, are more concerned with keeping Mexican markets open Mexican tomato imports. for their shipments. Well, if the Florida growers would win, doesn’t that mean the But beyond politics, the shame for the industry is that the whole Mexicans are doing something wrong? Perhaps in terms of legal niceties, controversy distracts from the economic imperative of the produce but it is important to understand that the anti-dumping statutes do not industry: To produce products that consumers wish to buy at prices require a showing of anything substantively wrong. Under the law, the they can afford, yet are still profitable for the producers. definition of dumping is simple: Either an item must be sold in the Part of the problem is that producers still define themselves too United States for less than the cost of production, or it must be sold for narrowly. By my count, there is only one — count it, one — Florida less than it is being sold in the market where it is produced. producer who actually owns assets in Mexico, despite the fact that the It is notable that the standards for dumping do not include any Mexican deal has been growing for decades. This has to do with self- finding that the seller is receiving government subsidies or anything of identification as a Florida farmer, rather than looking to the consumer that nature. and self-identifying as a supplier to those consumers. Legal efforts to Under any circumstances, anti-dumping laws are suspect. After impose duties may buy a few years but, in the end, they are a distraction all, selling cheaper products benefits consumers. It is not 100 percent from the imperative of flavor, quality and service. clear why protecting producers should be more important than Products have to be produced by those who can win markets. Florida helping consumers. is right; of course, the suspension agreement should be set aside. But The standards, of course, make no sense at all when it comes to fresh proceeding with a new anti-dumping case is unlikely to serve the produce or perishables in general. The idea that someone shouldn’t sell industry long-term. This is America, and anyone who wants to sell at below the cost of production might make some sense if one is tomatoes should be able to do so at the price they wish to sell at. speaking of an item that can be easily warehoused. Shakespeare wrote, “First, let’s kill all the lawyers.” In this case, the The issue is how to maximize returns.Very often, taking a small loss sentiment means that all these dumping and anti-dumping disputes right away is more useful than taking a large loss later. Almost all will not increase produce consumption — only exceptional product, produce vendors sometimes sell at a loss, so this concept is not very delivered with incredible service and at a great price is likely to do that. helpful when applied to fresh produce. All these negotiations, filings and requests to the government are Equally, weather and environmental factors dictate where produce thus distractions from the truly important work at hand. pb

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FORWARDTHINKING

OCTOBER 1 - 3, 2012 currently drive strategy and growth in an organization. WASHINGTON PUBLIC POLICY CONFERENCE ConferenceVenue: Omni San Diego,San Diego,CA The produce industry’smost powerful public policy event. Conference Management: Produce MarketingAssoci- ConferenceVenue: Hyatt Regency Capitol Hill, ation, Newark,DE Washington D.C. Phone: 302-738-7100 • Fax: 302-731-2409 Conference Management: United Fresh Produce Email: [email protected] Association,Washington D.C. Website: www.pma.com Phone: 202-303-3400 • Fax: 202-303-3433 Email: [email protected] January 20 - 22, 2013 Website: www.unitedfresh.org SWEET POTATO CONVENTION California Sweet Potato Council hosts the 50thAnnual October 21-25, 2012 United States Potato Convention. SIAL PARIS ConferenceVenue:Westin,Charlotte,NC The 25th global international food products exhibition Conference Management: United States Sweet ConferenceVenue: Paris NordVillepinte - Pac des Potato Council,Columbia,SC Expositions,Paris,France Phone: 803-788-7101 • Fax: 803-788-7101 Conference Management: IMEX Management Inc., Email: [email protected] Charlotte,NC Website: www.sweetpotatousa.org Phone: 704-365-0041 • Fax: 704-365-8426 Email: [email protected] January 20 - 22, 2013 Website: www.imexmgmt.com NASFT WINTER FANCY FOOD SHOW TheWest Coast’slargest specialty food and beverage event. October 26 - 28, 2012 ConferenceVenue: Moscone Center,San Francisco,CA PMA FRESH SUMMIT Conference Management: NASFT,NewYork,NY ConferenceVenue:Anaheim Convention Center, Phone: (212) 482-6440 • Fax: (212) 482-6555 Anaheim,CA Website: www.fancyfoodshows.com Conference Management: Produce Marketing Association,Newark,DE January 23 - 25, 2013 Phone: 302-738-7100 • Fax: 302-731-2409 TROPICAL PLANT INDUSTRY EXPOSITION Email: [email protected] TPIE is the trade event showcasing the latest trends in Website: www.pma.com foliage,floral and tropicals in warm and inviting S.Florida. ConferenceVenue: Broward Convention Center, NOVEMBER 8 - 10, 2012 Ft.Lauderdale,FL 44TH NOGALES PRODUCE CONVENTION Conference Management: Florida Nursery Growers & AND GOLF TOURNAMENT LandscapeAssociation,Orlando,FL ConferenceVenue: Rio Rico Resort & Tubac Golf Resort, Phone: (407) 295-7994 • Fax: Rio Rico,AZ Email: [email protected] Conference Management: Fresh ProduceAssociation of Website: www.fngla.org theAmericas,Nogales,AZ Phone: (520) 287-2707 • Fax: (520) 287-2948 January 29 - 31, 2013 Email: freshfrommexico.com HOTEL, MOTEL & RESTAURANT Website: www.freshfrommexico.com SUPPLY SHOW SE ConferenceVenue: Myrtle Beach Convention Center, November 10 -13, 2012 Myrtle Beach,SC INTERNATIONAL HOTEL, MOTEL Conference Management: Leisure Time Unlimited Inc., AND RESTAURANT SHOW Myrtle Beach,SC ConferenceVenue: Javits Center,NewYork,NY Phone: 843-448-9483 • Fax: 843-626-1513 Conference Management: GLM,White Plains,NY Email: [email protected] Phone: 914-421-3346 • Fax: 914-948-6197 Website: www.hmrsss.com Email: [email protected] Website: www.ihmrs.com FEBRUARY 6 - 8, 2013 FRUIT LOGISTICA November 11 -14, 2012 The world’sleading trade fair for the fresh fruit and WESTERN GROWERS ANNUAL MEETING vegetable industry. ConferenceVenue: Fairmont Resort,Scottsdale,AZ ConferenceVenue: Berlin Exhibition Fairgrounds Hall 1- Conference Management:Western GrowersAssociation, 25,Berlin,Germany Newport Beach,CA Conference Management: Messe Berlin GmbH,Berlin, Phone: 949-863-1000 • Fax: 949-863-9028 Germany Email: [email protected] Phone: 493-030-382048 • Fax: 493-030-382020 Website: www.wga.com Email: [email protected] Website: www.fruitlogistica.com DECEMBER 4-6, 2012 NEW YORK PRODUCE SHOW AND CONFERENCE February 10-13, 2013 The 3rdAnnual iteration of Celebrating Fresh! in the N.G.A.Supermarket Synergy Showcase magical city of Manhattan. The National GrocersAssociation is the national trade ConferenceVenue: Pier 94,NewYork,NY association representing the retail and wholesale grocers Conference Management: PRODUCE BUSINESS, that comprise the independent sector of the food distri- Boca Raton,FL bution industry. Phone: 561-994-1118 • Fax: 561-994-1610 ConferenceVenue: Mirage Hotel and Casino, Email: [email protected] LasVegas,NV Website: www.nyproduceshow.com Conference Management: National GrocersAssociation, Arlington,VA JANUARY 16 - 18, 2013 Phone: 703-516-0700 • Fax: 703-516-0115 PMA FIT LEADERSHIP SYMPOSIUM Email: [email protected] This program is designed for decision-makers who Website: www.nationalgrocers.org To submit events to our Forward Thinking calendar, please email [email protected]

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PRODUCE WATCH

TRANSITIONS

MANN PACKING CO. INC. PEAR BUREAU NORTHWEST SALINAS, CA PORTLAND, OR Megan Grim joins the company’s Bob Catinella has joined the marketing department as the company as the regional new packaging coordinator. Grim marketing manager respon- is a recent graduate of Cal Poly sible for the Mid- San Luis Obispo with a degree in Atlantic/Northeastern U.S. agricultural business and a territory. Catinella brings a concentration in marketing. While 27-year history of retail attending Cal Poly, she served as marketing and sales experi- a marketing intern at Mann for ence to PBN, having worked the past four years. This is a new for companies like Advantage position for Mann Packing, and Danny Goforth joins the Sales and Marketing and Grim will report to Christine customer solutions/sales team as Entenmann’s. He studied Keller, director of marketing a sales executive. Goforth gradu- business management and innovations. ated from Cal Poly San Luis computer science at the Obispo in 2010, with a degree in University of agricultural business. He worked Massachu- previously in commodity and setts in THE UNITED STATES value-added sales, product Boston. POTATO BOARD management and business devel- DENVER, CO opment as a sales/business Alexandra Imhof has been promoted development manager with to the position of USPB industry Colorful Harvest in Salinas, CA. communications and policy manager. Imhof has been with the USPB since August, 2003, when she was hired in the finance department. In October, 2006, Imhof transferred into the newly created industry communications and policy (ICP) department. With her promotion, Imhof will be undertaking the added responsibilities FOX SOLUTIONS of maintaining the USPB’s website MCALLEN, TX and the creation and delivery of Paul Jackewicz has joined the e-newsletters to the industry. company as East Coast Representa- tive for its packaging and equipment sales team. He will be responsible for all sales related to Fox Solution’s extensive line of THE GIUMARRA COMPANIES produce-handling equipment, as LOS ANGELES, CA well as the development and main- James Paul has joined the team’s West Coast tenance of value-added products avocado and asparagus sales staff. He will be that enhance operations across dealing with Midwest and East Coast customers to the country. implement programs designed to create incremental sales for asparagus and avocados. He will also be coordinating efforts with Giumarra’s global supply to provide a seamless GIUMARRA NOGALES continuity of fresh Nature’s Partner asparagus throughout the year. LOS ANGELES, CA Giumarra Nogales has expanded its sales team with Ernest Valencia, a graduate of Arizona State University, where he received a degree in business. Most recently, Valencia worked in sales for Nogales, AZ-based Farmer’s Best International. He specializes in the dry fruit and vegetable category and will SOUTHERN SPECIALTIES INC. be responsible for selling POMPANO BEACH, FL the company’s full line Southern Specialties, Inc. welcomes of vegetables and Brad Bailey as director of sales. Fair Trade-Certified Bailey has experience in sales and melons grown in procurement in both the Mexico, including grower/shipper and retail sectors of a line of USDA the industry. Most recently, he held Certified Organic the position of executive director of products. procurement for Pero Family Farms in Delray Beach, FL. Bailey has also held several positions with Super- Giumarra Nogales has added Tom Frudden to the valu. His duties will involve sales team. He most recently served as managing daily sales operations and sales manager for Red Rooster Sales, acting as liaison with the company’s based in Firebaugh, CA. Frudden has procurement division. extensive experience in the tomato category. He received a crop science degree from California Polytechnic University.

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]

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PRODUCE WATCH

TRANSITIONS

THE IDAHO POTATO ASSOCIATED POTATO GROWER ALPINE FRESH COMMISSION GRAND FORKS, ND MIAMI, FL EAGLE, ID Foodservice industry veteran Steven Alpine Fresh has The Idaho Potato Grod has recently joined the sales hired Stacy Spivey Commission (IPC) staff. Grod has worked with foodser- as domestic berry has hired Travis vice companies for the past program director. Blacker as industry 25 years, most Spivey, having relations director. He recently with Maglio significant industry will work out of the & Co., in Glendale, experience and IPC’s Eastern Idaho WI, with a sales having been a blue- office and will focus territory spanning berry grower on building and from Wisconsin to himself, is the ideal developing relation- Kentucky. Previ- person to expand ships between the ously, he was the program. Part IPC and all industry employed by US of Spivey’s responsibilities include building members including growers, shippers and proces- Foods in long-term relationships with domestic growers. sors. Blacker brings more than 19 years of Idaho Menomonee potato industry experience to his new role. Falls, WI.

ANNOUNCEMENTS PRODUCE PRO SOFTWARE OPENS NEW LOS ANGELES OFFICE PHILLY PRODUCE LLC OPENS ON In response to the continuous growth of its PHILADELPHIA WHOLESALE customer base and the addition of several new team members, Produce Pro Software has moved its Los PRODUCE MARKET Angeles office to Commerce, CA. The new space A new wholesale produce distributor, Philly Produce LLC, has opened on the BARD VALLEY MEDJOOL DATE GROWERS includes both a large conference room and private EXPECT 30 PERCENT CROP INCREASE offices. The additional workspace will allow Produce Philadelphia Wholesale Produce Market. Philly Produce offers a full line The Bard Valley Medjool Date Growers Associa- Pro Software to conduct on-site tion (BVMDGA), Bard Valley, CA, is projecting a customer meetings and of fresh fruits and vegetables, with a specialty in tropical products. This near 30 percent crop increase for the 2012/2013 training sessions. The LA season, with total production as high as 15 office staff will continue includes diverse pre-cut fruits and vegetables, which are shipped fresh million pounds, up from 11 million pounds this to be available to year. To accommodate the larger crop, Datepac, work at customer daily. Philly Produce is staffed by salesmen Jim Canterino and Jose owned by BVMDGA members, installed addi- locations from their tional new, state-of-the-art conditioning rooms new office location. "Blue" Flores (below). The firm is a subsidiary of Wuhl Shafman at its headquarters and packing plant in Yuma, Lieberman Corp., based in Newark, NJ. AZ, earlier this year. The new controlled-environment facilities significantly boost the company’s annual Medjool date conditioning and production capacity.

MANN PACKING TO PARTICIPATE IN ROCK ‘N’ ROLL MARATHON SERIES Mann Packing Co. Inc., Salinas, CA, is teaming up with the Rock ‘n’ Roll Marathon Series® to feature its award-winning Stringless Sugar Snap Peas at two major race events this fall in Virginia Beach, VA, and San Antonio, TX. The Series is the world’s largest running series and a charity MISIONERO fundraising event that raised more ANNOUNCES than $256 million in 2011. In addi- ZESPRI LAUNCHES tion to Sugar Snap Pea sampling, NEW CARTON KIWIFRUIT FOR KIDS 2012 Mann will distribute future-purchase DESIGN ZESPRI Kiwifruit, one of the world’s coupons to Misionero largest kiwifruit marketers, has more than Vegetables, announced its second annual Kiwifruit 35,000 Gonzales, CA, for Kids campaign. The campaign, attendees, has a new which enjoyed huge success last year, and carton design. has chosen six children’s health chari- conduct The design ties to represent the six regions of the grassroots marks a new United States to help raise awareness marketing direction for for childhood obesity including about the Misionero as it aligns its corporate Misionero brand with its Treeswing, Chicago Run, I Can Founda- benefits Earth Greens Organics and Garden Life™ brands. Each tion, Play Rugby USA, Louie’s Kids, of Mann’s branded carton is now represented by a color block. The and Live Well Colorado. Each charity’s product Misionero-branded carton, used for foodservice items, has a mission is aligned with ZESPRI’s line. green color that ties into its corporate logo. Each Earth Kiwifruit for Kids campaign objective: Greens Organics carton can be identified by red and the to educate America’s youth on how to Garden Life conventional carton is black. eat well and live active lifestyles.

18 PRODUCEBUSINESS• OCTOBER 2012 PBH Awards.qxd:Layout 1 9/28/12 10:51 AM Page 1

TURN YOUR MARKETING INTO AN AWARDING EXPERIENCE

Right now, and on through June 7, 2013, we’re taking entries for the 25th Annual Marketing Excellence Awards Program, presented by PRODUCEBUSINESS. The awards recognize excellence in marketing in each of six categories: retailers, restaurants, wholesalers, shippers, commodity organizations and allied service/product providers. Print, broadcast and other media are eligible to win.

To participate, send us the following for each entry:

1. Your name, company, address and phone.

2. Type of business.

3. Names and dates of promotion (must have taken place between June 1, 2012 and June 1, 2013). 2011 MARKETING EXCELLENCE 4. Promotion objectives. AWARD WINNERS 5. Description of promotion. • The Avocado Producers And Exporting 6. Promotion results (sales or traffic increases, media Packers Association of Michoacan (APEAM) attention). What made this program a success? • California Avocado Commission • Columbia Marketing International Corp. 7. All support materials used in the promotion – such • Concord Foods as POP, ads, posters, TV commercials. • Crunch Pac High-resolution images to illustrate the promotion • Idaho Potato Commission are encouraged. (Please do not send any produce) • National Mango Board • Network for a Healthy California/ Harvest of the Month • Ocean Mist Farms SEND ENTRIES TO: • Sage Fruit Co. PRODUCE BUSINESS MARKETING • Stemilt Growers LLC EXCELLENCE AWARDS • Sunkist Growers P.O. Box 810425 • Boca Raton, FL 33481-0425 • Sunlight International • University of Massachusetts, Amherst Deadline for entries is June 7, 2013 • Vidalia Onion Committee For additional information, call: 561-994-1118, Ext. 101 Pundit.qxd:Layout 1 9/27/12 1:23 PM Page 1

Putting Mango Recall Into Perspective

FROM JIM PREVOR’S PERISHABLE PUNDIT 09.20.2012

ur piece, Without Clear Proof, Industry Suffers From Mango 4. All companies involved in the distribution of fresh produce Recall And Is Left To Defend Itself, featured a letter from need to look at their individual business models to determine ODave Westendorf of Bay Area Produce, in San Clemente, where changes need to be made to protect themselves from a California. He is trying very hard to look at the Splendid mango Splendid Products-type of situation. Grower and retail supply situation and find solutions that might help the industry in the future. contracts need to be modified to account for recall liability and He was kind enough to share his thoughts with us once more: placing it where it belongs, at the proven source of Thank you very much for publishing my letter regarding the contamination whether that be the grower, distributor, Splendid mango recall and for your thoughtful response. I have wholesaler, purveyor, or retail level. had many people call or email their thoughts, and I’m coming 5. In discussing this recall situation about Splendid, a shipper away with several observations: friend of mine suggested that perhaps there should be a protocol 1. Given the fact that foodborne illnesses are extremely hard implemented by the FDA/CDC whereby when a product like to trace and that our food safety agencies’ main responsibilities mangos or tomatoes is suspected in a salmonella/listeria/etc., lie in protecting the public, some insurance mechanism must be contamination that a “stop sell” order be issued where one or made available to companies like Splendid to cover their losses more shipper/grower(s) who “may be” a source of the resulting from a recall. Product liability insurance is readily contamination would quit selling, advise their customers to also available, yet in most, if not all situations, it does not cover the quit and hold the product until testing can confirm or deny expense of actually taking the product out of the supply chain. contamination. When the contamination or lack thereof, Perhaps United Fresh or Western Growers could underwrite becomes certain, then either sales could resume, or a recall such policies. While I’m not a fan of expanding our government, notice would be implemented. how about some mechanism through PACA? After all, the I appreciate the work that the health agencies do, however USDA subsidizes crop insurance for farmers. Why not recall when a contamination source is not verified and a insurance for produce distributors? shipper/grower is forced into a “voluntary” recall, he suffers 2. Health agencies should not be allowed to publicly serious financial penalties through possibly no fault of his own. implicate a specific grower’s product without definitive proof of If no contamination is ultimately proven, or another source is contamination. Nothing more than a general warning should be found, the shipper/grower is left holding the bag with no issued, and even then, other possibilities should be thoroughly recourse against the government agency that falsely accused researched and eliminated before a product is implicated. Early him of handling contaminated product. in this investigation, a California health official told me that I’m sure we haven’t seen the end of this saga, but hopefully California was only following Canada’s lead and could not tie lessons will be learned and some good things might come from it. the California outbreak to any specific mango label. Who is to — Dave Westendorf, Bay Area Produce, San Clemente, CA say that the 125 people who were infected with Salmonella We certainly feel the angst that Dave is expressing and Braenderup consumed it in a mango salsa containing items like appreciate his efforts to think through to a solution. We think he green onions, cilantro, chili peppers, or orange juice? After all, raises points well worth thinking about: those who will remember the salmonella Saintpaul tomato 1) Insurance On Recalls contamination will recall that tomatoes were never the carrier, The need for this is obvious, and efforts have been made to get and the ultimate source was eventually proven to be chili private companies to do this and to see if the government would peppers. The collateral damage done to the tomato industry was get involved. Recall insurance is sold. But in many cases, it is incalculable, yet tomatoes were never the culprit. Perhaps the inadequate — covering expenses such as stamps to mail out recall same thing will be proven in the mango situation, albeit a little notices but not fees charged by retailers to remove product from the too late for Splendid’s sake. shelves — or triggered by events, say the finding of a pathogen on 3. Sad as it may be, Splendid might not be facing the losses a product that often don’t apply. Since recall insurance is often not that they are currently incurring if they had not issued a triggered by a recall, but by a condition such as the finding of a “voluntary” recall and had waited until a recall was mandated pathogen, recall insurance, even when one has it, often won’t pay. by one of the state or federal health agencies. Splendid did the It is a tough thing to make happen. From a public policy point morally right thing, but will pay dearly for its integrity and moral of view, what you don’t want to do is create a situation where code. Some other mango shippers have proudly announced that companies want to wait for a government-ordered recall. Yet, if their product is not contaminated and therefore will not be you don’t do that, then you are insuring against a “choice” that a recalled. Splendid could have also pointed to every independent company makes, and this creates the fear that if the cost of recalls analysis of their product to date and said the same thing. can be shifted to a third party, there will be a lot more recalls. Companies need to think twice about issuing a voluntary recall For that matter, even if such insurance only worked in the event unless their product is specifically proven to be contaminated of a government-ordered recall, what constrains the government with the suspect bacteria. from ordering recalls but aggressive efforts by the companies

20 PRODUCE BUSINESS • OCTOBER 2012 Village Farms.qxd:Ad 9/25/12 4:27 PM Page 1 Pundit.qxd:Layout 1 9/27/12 1:22 PM Page 2

FROM JIM PREVOR’S PERISHABLE PUNDIT 09.20.2012

implicated to prove the recall unjustified and the knowledge of government officials that Other than not having pathogens to their acts can crush companies and cost begin with, the ability to identify jobs. If these were no longer concerns, government officials might well order many breaking points in production or more recalls and companies might well processing so that we can say that lots acquiesce. Also many of these costs are retail dictates; as it is, many shippers think differ meaningfully is probably the best them excessive. Well, what would hold down these costs if retailers knew an way to limit the impact of recalls. insurance company was going to pay them? just recall those lots. We have addressed the facility may have failed to remove it. On the government side, the thought is issue of before. The problem is that if lot Besides, most vendors have little choice that one who suffers from bad weather is numbers simply signify some quantity run on but to sign what customers demand and blameless. So flood insurance or insurance a belt, they are meaningless for food safety then pray they don’t get called on to have against crop failures is acceptable. Neither purposes. We need to know that lot 100 is to execute. the government nor the citizenry are at the differentiated from lot 99 and lot 101 by 5) “Stop Sell” Orders point of yet saying that pathogen some procedure of significance to food safety It is an interesting idea, but testing distribution is also without blame. Correctly — say a sanitization of the line. Otherwise, cannot confirm or deny the existence of a or incorrectly, officials look at situations such being able to identify problems with specific pathogen on a wide basis. Otherwise, every as the Jensen Farms cantaloupe matter and lots is of little value. It is significant that when shipper could do test and hold, and we see the producer at fault. They don’t want Splendid Products issued its recall, it did not would never have a food safety outbreak. to subsidize his recalls; they want to make a list specific lot numbers, just PLU numbers. In We dealt with this issue in an interview titled recall as threatening as possible to his fact, it is not clear why it listed PLU numbers A Closer Look At Finished Product Testing. business so he will be incented to do at all since they are not specific to the mangos The problem is that pathogen everything possible to avoid a business- being recalled. contamination is often seemingly random. threatening disaster such as a recall. Other than not having pathogens to begin It is too expensive to do statistically 2) Ban On Implicating Specific Grower with, the ability to identify breaking points in significant testing — and even statistically Without Proof production or processing so that we can say significant testing is no protection against Here the industry needs to be careful that lots differ meaningfully is probably the Black Swan events. about what it wishes for — it just might get best way to limit the impact of recalls. This is all beside the point that logistically, it. The primary goal of public health 3) Limiting Voluntary Recalls doing such testing in thousands of stores, authorities is to minimize illness among the From a business perspective, delaying warehouses etc., would be difficult and population. If it believes a foodborne might well save money — although only at unfair to consumers and trade buyers who pathogen is threatening the population, the the season end or if the lots are meaningful would be left losing shelf-life and providing public health authorities will, of course, and one can say that the new product is warehousing while waiting for results. want to warn the population. So the definitively not contaminated. *** question then becomes: Should the FDA If the season is ongoing and the lots not Over the years, we have felt that many make a general warning — “Don’t eat meaningful, one would just have to recall things could be done to make it less likely spinach” — or a specific warning — “Don’t the presently available product. that government would cause damage, eat a specific brand or lot.” Of course, if there is a real risk, then include crushing businesses and loss of jobs There is little question that the interests failing to recall could have financial by erroneously fingering particular of the industry lie in making the consequences when one gets sued because businesses or commodities. We also announcements as specific as possible. This someone dies. It could have reputational thought that steps could be taken to reduce was the lesson of the spinach crisis and, consequences if retailers think you are the the impact of even correct advice. during the salmonella Saintpaul crisis, the company that won’t do the right thing. For example, government epidemiologists big effort was to continuously get the FDA 4) Supply Contract Modification could have to submit their case before a to limit its area of interest. There is little question that everyone panel of independent epidemiologists for a There exists some question as to the should review their business and consider review, and be required to publicly sign such effectiveness of this. During the Jensen what would happen in the event of a food recall orders so their reputation is on the line. farms cantaloupe incident, sales collapsed safety problem. Although having liability Instead of declaring that there is a risk for cantaloupe in general, despite the FDA placed at “the proven source of and a recall is required, or declaring a being very specific in its announcements. contamination” sounds like a great idea — recommendation not to consume, any risk Still, it seems logical that more limited in the vast majority of cases the cause of could be put in perspective. If the FDA was announcements are better for the industry contamination is never “proven” — plus to announce that there is a .00056 percent than broader announcements. Indeed the such clauses would likely lead to endless chance that one’s fruit or vegetable is entire Produce Traceability Initiative was litigation as people tried to get a court to contaminated with a pathogen, and a founded in this belief. declare who was at fault. Plus, perhaps fault .000021 percent chance one might get ill If anything, the goal should be that is sometimes shared. A pathogen is always from eating this crop, consumers might instead of implicating Splendid, we could unacceptable but may have less impact if the view such announcements in perspective. define a series of lot numbers that cold chain is always perfectly maintained. A Many thanks to Dave for trying to think meaningfully distinguish between lots and farm may be the “cause,” but the washing through a better way.

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RESEARCH PERSPECTIVE

Athletes Benefit From Bananas

BY DAVID C. NIEMAN, DRPH, FACSM, DIRECTOR, HUMAN PERFORMANCE LAB, NORTH CAROLINA RESEARCH CAMPUS; PROFESSOR, APPALACHIAN STATE UNIVERSITY (BOONE, NC).

newly published study in the pres- 27 grams of carbohydrate (half as A tigious journal, PLoS ONE [a sugars), 105 calories and is a peer-reviewed, open-access online good source of potassium and resource reporting scientific studies from all vitamin B6. Potassium is an disciplines], confirms that bananas are an important electrolyte during exer- effective and healthy energy source for ath- cise, and the sugars in bananas letes. My research group from the are a mixture of glucose, fructose Kannapolis-based Appalachian State Uni- and sucrose, similar to what is versity Human Performance Laboratory at found in sports drinks. The the North Carolina Research Campus used glycemic index of bananas is 51 a new technology called metabolomics and (low-to-medium rating), meaning the sugars in a banana are not released too fast or too slow, an important potential benefit for the exercising athlete. The antioxidant value of bananas is higher than most athletes perceive, and The data from this is equal to levels found in kiwi CHART COURTESY OF APPALACHIAN STATE UNIVERSITY HUMAN PERFORMANCE LABORATORY study supports the fruit and orange juice. Thus, as growing trend of hypothesized, bananas appear to be a The typical increase in inflammation and unique mixture of carbohydrates, nutrients oxidative stress following intense exercise athletes to use fresh and antioxidants that may provide good was attenuated to a similar degree by and dried fruit as nutrition support during prolonged and bananas and the sports drink, significantly intensive exercise. below levels experienced when just water substitutes for sugar- Trained cyclists from the Charlotte, NC, was consumed. Bananas also provided laden sports drinks. metropolitan area were recruited and agreed added nutritional benefits including a boost to engage in two 75-kilometer cycling race in antioxidant capacity, and significant trials in the Human Performance Lab. In ran- potassium and vitamin B6. domized order, cyclists either ingested We concluded that ingestion of bananas specified quantities of a sports drink or before and during prolonged and intensive bananas. Results from this study support the exercise is an effective strategy, both in terms perception of athletes that bananas are a of fuel substrate utilization and cost, for sup- healthy alternative to sports drinks. We had porting performance. Most athletes are showed that bananas provided fuel to the trained cyclists race 75 kilometers on their health-conscious, and try to consume nutri- working muscles just as well as a popular bicycles on CompuTrainers (RacerMate, Seat- ent-dense diets to support their heavy sports drink. Metabolomics using mass spec- tle, WA) in the lab. In randomized order, training. The data from this study supports trometry-based techniques to measure the subjects exercised once while drinking about the growing trend of athletes to use fresh shift in hundreds of metabolites, or small one cup of sports beverage every 15 minutes and dried fruit as substitutes for sugar-laden molecules in the body that occur in response or a second time while consuming one-half sports drinks. We are currently conducting to nutrition and exercise interventions. banana every 15 minutes with water. An in- similar studies using watermelon slurry, a Bananas are common at road race events depth metabolomics analysis of blood blended fruit and vegetable juice, and because they are a cost-effective energy samples obtained from the athletes showed selected flavonoids from blueberries and source for athletes, and contain high that bananas provided all of the fuel needed green tea to determine their efficacy in help- amounts of the sweat electrolyte potassium. for intense exercise, and equaled the rate of ing the athlete meet the physiologic demands A direct comparison of bananas with sports the sports drink. of prolonged and intensive exercise. drinks as a fuel source during exercise had not yet been investigated. In the PLoS ONE The Human Performance Laboratory at Appalachian State University in Kan- publication, we theorized that bananas napolis, NC, investigates the influence of unique plant molecules on offered several unique advantages for ath- age-related loss of muscle mass, muscle mitochondrial biogenesis, and exercise-induced changes in immune function, oxidative stress, and inflammation. letes. One medium banana contains about

24 PRODUCEBUSINESS• OCTOBER 2012 Perspective & Analysis.qxd:Layout 1 9/28/12 4:19 PM Page 2

COMMENTS & ANALYSIS

Marketing Push Needed

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

he question of how produce ought liant marketing idea was to go to the nearby Tto be promoted continues to vex hospital and offer the residents, interns and the industry. The effort to launch a doctors free food and drinks on one condi- national generic promotion program, simi- tion — they had to wear their white doctor’s The win here is lar to those for beef, milk and other coats to the hot dog stand. The doctors not just an industries, collapsed due to little enthusiasm thought it was a form of ID — to prove they opportunity to sell by those who were expected to pay the bill. were entitled to the promotion — but it was The Produce for Better Health Foundation, actually a brilliant form of marketing to asso- bananas to athletes which led the national 5-a-Day campaign ciate Nathan’s hot dogs with people who but also to associate and now heralds the Fruits & Veggies: More the public identified as experts in health. If it Matters campaign, certainly has earnest was good enough for all these doctors, well, bananas more leadership, but there is just not a lot of evi- then, surely it was good enough for me. closely with dence that broad-based health marketing Thus was born Nathan’s Famous, now a on this scale boosts produce consumption. New York institution. healthful activity One way of addressing this dilemma is to Similarly, the win here is not just an and healthy people. move away from health-based marketing. opportunity to sell bananas to athletes, but We championed this position in the July, also to associate bananas more closely with 2012 issue of PRODUCE BUSINESS when we healthful activity and healthy people. wrote a column titled Two Cheers For Bacon. All over the country, in athletic events Another approach is to identify the ranging from peewee soccer to professional health benefits of specific produce items or sports, athletes consume massive amounts of accounts for their wild success? Well, sports the health benefits of use under specific cir- sports drinks, such as Gatorade and Power- drinks have a legitimate story on hydration and cumstances and promote in a more focused ade. This research is saying they could just as electrolytes, and they have the flavor profile manner. As we have written before, the key well go for a banana. The research holds the that increases the propensity to stay hydrated. point to keep in mind is that it is impossible prospect that the same is true for other fruits. It is, however, a fairly modest story. Of to increase produce consumption generally What really drives this? It is hard to course, Gatorade alone — just one brand — unless we increase the consumption of spe- believe that a few electrolytes are so inher- spends around $200 million a year on adver- cific produce items at specific times of the ently valuable that athletes at all levels flock tising. It is everywhere, from product day and in specific places. to the products because they enhance their placement in video games to the Super Bowl This research is intriguing because it points athletic performance and recovery after ath- and, most important, Gatorade has a large to that type of opportunity for bananas. letic work. When you really look at the number of endorsers of the highest caliber What’s more, the opportunity identified — subject, it seems that water is the best including Peyton Manning, Serena Williams, having runners consume bananas instead of source for hydration, and the trick with Michael Jordan, Dwyane Wade and Misty commercial sports drinks — is associated with sports drinks is that the typical sweet/tart fla- May-Treanor, among many others. This a healthy activity, running. This means that vor doesn’t quench thirst and so people points to the big draw for Gatorade — it is succeeding in boosting banana consumption keep drinking after they would have not the electrolytes; it is the wish fulfillment. at athletic events would not only have spe- stopped with water. Perhaps this is the biggest issue for the cific effects but, also, would provide a kind of This points to a need for further research. produce industry. There are many studies halo effect on bananas that would probably It may be true that bananas, when consumed showing lots of benefits to consumption of translate into higher consumption at differ- in set quantities at set times, have benefits different items. Marketing takes that kernel ent times and in other places. that equal or exceed sports drinks. What is of a benefit and turns it into a dream that The opportunity is one in which sharp uncertain is whether athletes, free to choose one can relate to. Bananas need a market- marketers always seek out. In 1916, Nathan what and when to eat and drink, would in ing push so that peewee athletes don’t just and Ida Handwerker launched a hot dog fact choose to eat bananas on such a sched- think that bananas are good for them. They stand on Surf and Stillwell Avenue in the ule where these benefits would be realized. should think that if they eat bananas, they Coney Island section of Brooklyn. In those Gatorade was developed on the football will be the next Michael Jordan. If we don’t days, before the establishment of many field at the University of Florida, so perhaps focus on that, studies about the benefits of food safety regulations, hot dogs — with there are real benefits for athletes working at eating one thing or another in one circum- the uncertainty of what was actually put in that intensity level. Of course, if the benefit of stance or another are likely to have only them — were particularly suspect. The bril- sports drinks is actually quite modest, what modest effects on consumption.

OCTOBER 2012 •PRODUCEBUSINESS 25 Coverstory.qxd:Layout 1 9/27/12 5:23 PM Page 1

Produce Finds A Home In NON-TRADITIONAL OUTLETS From convenience stores and gas stations to drug stores and vending machines, produce is popping up in a number of novel places. BY CAROL M. BAREUTHER, RD

o longer is fresh produce retailed cally sold in these outlets. Sam Magari, produce predominantly in supermarkets. Drug manager/buyer for Nice N Easy Grocery Shoppes, a 78- stores, convenience stores and unit convenience store chain based in Canastota, NY, vending machines are among the acknowledges, “There are many advantages to carrying Nnewest frontiers. In fact, the ardent fresh produce. First, it generates sales and profit hunger with which Americans are avidly buying their dollars. Second, our customers have come to depend fresh fruits and vegetables from these non-traditional on us for certain items, whether it is a banana, an formats has become what one industry analyst has apple or a fruit cup for snack, a cucumber, tomatoes called a “10-year overnight success.” and a head of lettuce for dinner. Third, it helps to Why? The demand for fresh produce and healthy generate more traffic in the stores.” alternatives for meal-making and snacking is growing. Non-traditional retailers are indeed picking up on According to July 16, 2012-released research by Mintel, produce rather than other products because fresh fruits a Chicago, IL-based market research company, over and vegetables are staple, affordable, high-impulse two-thirds (67 percent) of Americans of all ages are items that can make up for lost profits in other areas. actively seeking healthier foods. Robert Hoefs, a former produce category manager at When it comes to health and wellness, social Safeway and the current marketing director for fresh consciousness isn’t the only motivator for companies to foods at Core-Mark International Inc., a South San Fran- add a highly perishable product like fresh produce to cisco, CA-based broadline distributor whose clients their mix, especially one that requires investment in include drug and convenience stores, says, “The lines sourcing, distribution, marketing and merchandising between grocery, convenience and drug channels are much different from the non-perishable products typi- blurring. Drug retailers are challenged by competition

26 PRODUCEBUSINESS• OCTOBER 2012 Grower Express.qxd:Ad 9/25/12 4:21 PM Page 1 Coverstory.qxd:Layout 1 9/26/12 5:32 PM Page 2

from online pharmacies while convenience As a result of talks with former Chicago stores are facing reduced fuel margins and mayor Richard Daley about how to provide declining cigarette sales. To compensate, these residents with access to healthy food Fit Pick Identifies they are adding sandwiches, salads, juices, options at affordable prices, in August, cut fruit and fresh desserts.” 2010, Walgreens began to offer to 750 new Healthful Vending “For others,” adds Jeff Lenard, vice pres- food items including fresh fruits and vegeta- Fare ident of industry advocacy for the National bles in 10 redesigned stores on Chicago’s NOT ALL SELECTIONS in vending Association for Convenience & Fuel Retailing South and West sides. machines are created equal as far as good (NACS), which represents the 148,000-plus Jim Jensen, Walgreen’s divisional nutrition is concerned. In an effort to help stores across the country, “fresh produce is merchandise manager, reports, “Since that stem the rising tide of obesity in America, a way to differentiate themselves.” time, our company has pledged to convert in 2008, the Chicago, IL-based National A good example of this is Kwik Trip Inc., or open 1,000 ‘food oasis’ stores in desig- Automatic Merchandising Association a 425-unit convenience store chain based nated food desert neighborhoods in (NAMA) created Fit Pick, a nutrition rating in La Crosse, WI. John McHugh, manager of conjunction with First Lady Michelle Obama program designed to educate consumers corporate communications, says, “We and the Partnership for a Healthier America. about better-for-you choices in vending surveyed a representative sample of 5 Here, customers will find convenient and machines. Jackie Clark, NAMA director of million of our customers to find out for what healthy food options such as quick, simple public relations, explains, “We worked with they knew us best. The answer was breakfast items for on-the-go shoppers, a Registered Dietitian to set nutrition stan- bananas. We sell some 850,000 pounds of ready-to-eat lunch options, and quick and dards of 35 percent fat, 10 percent bananas per week 52-weeks a year at 38- easy-to-heat/cook meals to grab for dinner.” saturated fat and 35 percent sugar by cents per pound.” Schools, hospitals, office buildings, weight. Then, we canvassed a number of Non-traditional retailers are also filling a gyms, health clubs and similar locations manufacturers’ product lines, identified the niche where fresh produce wasn’t previously with captive audiences might not sound like products that fit this criteria and created a available for sale. Magari explains, “In some food deserts in the traditional sense, yet the list. These products are then identified to locations, we’re the closest thing to a ability to find a fresh produce snack in these vending customers with a Fit Pick-logo grocery store for miles, and customers have environs can be limited. That is where sticker on the tray of that item.” asked for more variety to meet their require- vending comes in. Sean Kelly, CEO at Produce items on this list include Del ments. Twenty-six of our stores have an HUMAN Healthy Vending, headquartered in Monte Fruit Cups, Dole Fruit Bowls and a expanded line of fresh produce.” Culver City, CA, explains, “Cost isn’t the number of dried fruit and nut products. Similarly, Deerfield, IL-based Walgreens, reason why people don’t choose healthy Operators enrolled in the Fit Pick program the largest drug retailing chain in the United snacks such as fresh produce; it’s conven- can choose as many of these items as they States with over 8,300 stores nationwide, ience. We look at vending as the epitome of want — five, 20 or the whole machine. This has hundreds of stores throughout the convenience. So far, it’s resonating with our allows operators to vary the mix, choosing Chicago area, many of which are located in customers, although bringing produce to more or less of healthful products based on communities that qualify as “food deserts.” the people has been more of a marathon their customer demographic. than a sprint. We currently have 1,500 The success of the program is evident. vending machines, a 200 percent increase Currently, Fit Pick is used by 175 govern- over the year before, and plan to place ment organizations including all branches 10,000 machines by 2015.” of the military, 105 school systems, 247 work sites and 573 vending companies. pb Beyond Bananas Fresh produce’s foray into non-traditional retail formats may have started with Walgreens is centered on single-serve fruits a bunch of bananas on the counter next to such as bananas, apples and oranges and the cash register. Yet the assortment today vegetables, as well as chilled produce, has gone far beyond this best-selling fruit. including ready-made salads and fruit cups, In one direction, there’s been a prolifera- says Jensen. “Our expanded product assort- tion of single-serve. Dionysios Christou, ment has successfully resonated with vice president of marketing for Del Monte customers as the frequency of their trips Fresh Produce North America Inc., head- has increased to meet demand for on-the- quartered in Coral Gables, FL, which go consumption and fill-in trips for those supplies fresh and fresh-cut produce in “what’s-for-dinner-tonight” moments. Curr- channels such as foodservice, cafeterias, ently, you can find our fresh assortment in vending machines, convenience stores and select stores in Chicago, Indianapolis, New gas stations, says, “The items that are York, and San Francisco.” Kwik Trip sells most successful are those with the longest Fresh-cut fruit cups are a favorite at Kwik 850,000 pounds shelf-life and products that are available Trip, says produce buyer, Dale Gruntzel. “We of bananas in single-serving sizes.” stock at least seven different types. One of weekly. PHOTO COURTESY OF KWIK TRIP INC. The core produce assortment at the best sellers is a combination of straw-

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berries, blueberries and kiwifruit.” the ability to sell whole pieces of produce According to Dan Negroni, president like apples, oranges and bananas in our and CEO of San Diego, CA-based Fresh machines.” Healthy Vending, which operates 2,000 Gil Sanchez, founder and CEO of machines placed in all U.S. states plus Annapolis, MD-headquartered Vend Natural Puerto Rico and the Bahamas, it is single- Inc., which has placed more than 600 of its serve sliced apples, baby carrots with refrigerated vending machines in 22 states, ranch dip and yogurt parfaits with blue- says, “Five years ago, we could find barely berries and strawberries that are popular enough packaged and single-serve produce vending items. “Packaging is important,” to fill the machines. That’s easier now and Fresh-cut fruit is he adds. “It needs to be something that sales of fruit alone are growing at over 10 becoming a can fit in a sleeve, although we do have percent annually. We’re moving as fast as popular find at convenience stores and gas stations. produce suppliers are willing to create single-serve products.” Top sellers in vending for Ready Pac Foods Inc., an Irwindale, CA-based processor of fresh-cut fruits and vegetables that supplies a variety of alternative channels, are Ready Pac Bistro bowl salads, Salad Singles, Ready Snax snack packs and fresh-cut fruit cups. Tristan Simpson, director of marketing, explains, “All items are packaged for convenience, and have the shelf-life needed to be successful in alternative formats. In addition, our product offerings are conducive to all day parts, allowing consumers to eat healthfully throughout the day.” Beyond fresh-cut packaged product, whole pieces of fruit are a popular offering at Latitudes, a Rio Rancho, NM, single-store concept that owner and president, Ron Brown, calls a cross between an upscale version of Fresh & Easy and Whole Foods Bistro with 24 gas pumps. “We have a scale in the deli, but not up by the cash register, so we decided to sell fruit like apples, plums and peaches by the each,” he says. “We quickly found out that to sell this way, we had to buy the biggest pieces of fruit available in order for customers to feel like they were getting a value.” In the opposite direction, the desire to offer customers even more staples led Kwik Trip to branch out from bananas and sell Wisconsin potatoes and onions. Then, since Gruntzel was already sourcing tomatoes for the sandwich-making staff to slice for the condiment bar, he started bringing in extra to merchandise whole next to the potatoes and onions. “Today, we carry more than 50 different items throughout the year, and over 35 items on a daily basis such as red cherries, peaches, nectarines, six different varieties of apples, pears, oranges, baby carrots, lemon and limes, mini sweet

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“We surveyed a representative sample of 5 million of our customers to find out for what they knew us best. The answer was bananas.We sell some 850,000 pounds of bananas per week 52-weeks a year at 38-cents per pound.”— JOHN MCHUGH, KWIK TRIP INC.

peppers, strawberries and blueberries,” will be up to eight farmers at once says Gruntzel. “I’m always looking for some- depending on what’s in season. We use thing new. We just added 12-oz. packages these same farmers to supply us through of fresh green beans and 8-oz. packages of the week with items like corn, blueberries, There are currently more sugar snap peas.” strawberries and peaches.” than 1,500 HUMAN Like Kwik Trip, Papa’s Healthy Food & PHOTO COURTESY OF Healthy vending FRESH HEALTH VENDING Fuel, a one-store operation located in East Going To The Source machines with plans to place 10,000 more by Otis, MA, in the heart of the Berkshire “The sourcing of fresh produce for these 2015. Mountains, has gradually added to and alternative formats is really a mixed bag,” expanded its produce selections in both says Don Goodwin, founder and president operator typically has 10 to 15 machines normal and novel ways. Rowena Sullivan, of Golden Sun Marketing, in Minnetrista, and will buy their produce at stores like manager, shares, “We started with staples MN. “I think a lot of it is being managed by Costco. Fresh produce typically represents like onions and potatoes. Now we carry independent wholesalers. As these formats only about 10 percent of vending sales, so more than 50 items and just added grow and gain scale, they will seek more it’s not a large quantity,” he says. Olivia’s organic spring mix and avocados competitive, lower cost goods.” HUMAN Healthy Vending’s Kelly agrees. this year. We’ll stock up on Fridays for the Purchasing fresh fruits and vegetables to “We control what goes into our machines weekend vacationers. Weekends are also sell through vending machines can be as from the top and give operators over when we host a local farmer’s market simple as a trip to the supermarket, says 1,000 food and drink products from which outside. From May through October, there Fresh Healthy Vending’s Negroni. “Each local to choose. We do encourage sourcing as

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locally as possible, what we call the Farm a more profitable operation. This model to Vending movement. For some opera- certainly doesn’t work with fresh produce tors, this means local farmers, for others a that has perishability and shelf-life issues. local produce distributor and for still Nice N Easy has solved this problem by others, it’s shopping at Wegmans and depending on produce wholesalers and selling the item in vending at a 40 to 50 distributors in its marketing area to source, percent gross margin.” purchase and distribute produce to its Convenience stores that have a foodser- stores as the chain does not have its own vice operation already source items like distribution center. Magari explains, “We lettuce, tomato and onions and will use provide them the list of items we want to these same suppliers to expand variety and carry — at times we request certain labels volume for retail sale. Drug stores like — and given the time of year, purchase Walgreens also partner with a variety of produce from local growers. Our stores respected industry suppliers to source high quality produce, says the company’s Jensen. “We work with our suppliers to source locally where and when possible and Produce On Wheels continually focus on seasonal relevancy, ON A SEPTEMBER AFTERNOON, three packing efficiency and product quality.” school children were waiting in line at the Camp Hill, PA-based Rite-Aid Corp., the neighborhood ice cream truck. Less than a largest drug retailer on the East Coast with playground away, 20 students, with 4,700-plus locations, entered into a another 10 times this amount on their way, licensing agreement in 2010 with Save-A- were eager to get in the doors of the Fresh Lot, a subsidiary of Eden Prairie, MN-based Moves Produce Market, a mobile fresh fruit Supervalu, to add the discount, limited- and vegetable store built in a converted assortment grocery store concept to 10 Chicago Transit Authority bus. Dara Cooper, existing Rite Aid stores in the Greenville, SC, senior project manager at Fresh Moves, market, thus providing its pharmacy shop- says, “We partner with farmers and pers with high-quality groceries at up to 40 produce wholesalers to get organic and percent less in cost than traditional grocers. affordable fresh produce. We stock the bus Eric Harkreader, public relations specialist each morning on Tuesday through Friday for Rite-Aid, details, “In these 10 stores, and display up to 50 different types of fruits fresh produce is primarily staple items such and vegetables such as snack fruit like as bananas, tomatoes, potatoes, onions, grapes, apples and bananas and meal squash/zucchini, apples and oranges.” ingredients like kale and Swiss chard in On the opposite end of the spectrum, specially designed baskets that hold the Kwik Trip buys its own bananas direct from produce securely while the bus is moving. companies such as Chiquita, Del Monte or We don’t have refrigeration, but we do Dole. “They come from Guatemala to Galve- have coolers for items like greens, plus we ston where we bring them to our ripening keep the bus at 65 degrees.” facility in La Cross, WI,” explains Gruntzel. Customers, who number 400 to 500 in “We have eight ripening rooms that hold three neighborhoods on Chicago’s South 2,016 boxes per room. We deliver bananas side, walk onto the bus to make their to our stores seven days a week, 365 days selections and a cashier travels aboard to a year, within 12 hours or less. They are ring up orders, which the non-profit organ- displayed on the top two rows of a large izations tries to keep comparable to a end-cap display in a two-color program, conventional grocery store. The Fresh some ready to eat today and others in a Moves team spreads the word by part- couple of days for the convenience of our nering with community-based organ- shoppers. We’ll also display them by the izations, and pulling up to venues with cash registers. Vertical integration is key to ready-populations such as schools and making this work,” he details. senior homes. The overall success has been great. Cooper remarks, “It’s been a lot of Solving The Perishability Puzzle work on many different levels, but the The conventional mindset in retail communities have really been welcoming. venues such as convenience and drug We’re gradually countering the myth that stores that handle non-perishable product healthy foods cost more and that kids don’t is to get as much as possible on a truck, like fruits and vegetables.” pb assuring less frequent deliveries, and thus,

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Cost isn’t the reason why people don’t choose healthy but are very good at maintaining the cold “ chain. That is crucial.” He adds, “I know snacks such as fresh produce;it’s convenience.We look there are some major distributors that, to at vending as the epitome of convenience...We get convenience stores to take fresh items, they purchase coolers and put them in the currently have 1,500 vending machines, a 200 percent stores under contract.” increase over the year before, and plan to place 10,000 “Yet another challenge,” says Nice N Easy’s Magari, “was to develop a staff of machines by 2015.” — SEAN KELLY, HUMAN HEALTHY VENDING trained produce coordinators. We started from scratch as produce was a new venture and it took a while. Today, our produce receive two to four produce deliveries a launching the program in September, 2010, coordinators are responsible for receiving week depending on their volume.” we have learned a tremendous amount, produce in good condition, for handling and High frequency ordering, as well as cold and we are continually improving on offer, merchandising, for checking code dates and chain logistics, also proved to be a chal- value and execution.” temperatures. They are also responsible for lenge for Walgreens. “We knew going into Another major challenge Nice N Easy culling any off condition produce.” this that part of our current and future faced was a lack of refrigerated equipment. Convenience stores with foodservice success comes from our strategic planning “As we build new stores, island-type tables operations have evolved novel ways to and solutions in both of these areas,” have been added and self-contained refrig- keep shrink low. For example, Latitudes’ admits Jensen. “For example, we have erated tables or cases are being added to Brown acknowledges, “It’s been a developed a customized cold chain distri- older stores,” says Magari. “Space has been blessing that the bistro is attached for bution network that enables frequent store an issue.” screw ups. Let’s just say we’ve made lots delivery to provide our customers with the Tony Freytag, director of marketing and of banana bread since we opened in highest quality products at affordable managing member for Crunch Pak, a Cash- January,” he jokes. prices. All the fresh food items available mere, WA-based fresh-cut processor of Papa’s Healthy Food & Fuel’s Sullivan are packaged minimally, and, when appli- apples, says, “Many or most have invested agrees and adds, “Waste is such a big cable, utilize display-ready containers, in coolers just like what we see at the chain issue. Therefore, we’ve developed recipes thereby reducing shipping waste. Since level. They are smaller and hold fewer SKUs, for almost every type of produce we carry.

Visit us at PMA Booth #3121

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For example, we added avocados last year and they didn’t sell that well. Now we also use them sliced on sandwiches.” In vending, remote monitoring is the way to assure fresh produce stays fresh. HUMAN’s Kelly says, “Our operators can set perishability dates with a three-day notifi- cation and access this information remotely by Web-based wireless technology. Vending machine technology is also such that we can automatically not allow a consumer to buy something that has expired.”

Marketing And Merchandising “The addition of fresh produce isn’t simply about supplementing SKUs,” says Bill Bishop, chairman and president of Willard Bishop Consulting Ltd., in Barrington, IL. “When you add cut fruit or apples or bananas to the typical convenience store fare of hot dogs and pretzels, customers think about the store differently. It’s a strategy designed to pursue new shopping occasions.” This strategy boils down to going after a new demographic of consumers for these retailers. Until recently, most consumers wouldn’t think of being able to buy fresh fruits and vegetables in a convenience store or pharmacy. Marketers are out to alter this perception in a variety of ways. Core-Mark’s Hoefs says, “It varies by retailer, but the items we offer are in-store and outside POS materials such as shelf- wobblers, ceiling danglers, window clings and pump-toppers. We also provide punch cards that offer customers a free salad once purchasing five, and promotional flyers that might feature a salad, bottle of water and banana for $4.99. One drug retailer that had a store across from freshman dorms at a local college did a guerilla campaign where they sent out flyers to let new students and their parents know that fresh meal items and produce was available and offered a 10 percent discount with a student ID.” At Nice N Easy, Magari explains, “The marketing of fresh produce is through monthly ad plans using colorful 7x11-inch signs, having eye appealing displays, and being consistent with quality and product availability.” Walgreens utilizes traditional advertising vehicles to highlight fresh food and produce items. Jensen details, “This includes radio, television and print advertisements, as well as local flyers and coupons. Additionally, in- store sampling events have called attention to our enhanced produce selection.”

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chef-staffed bistro instead of fast food; a Beyond vending, drug and convenience Starbucks-like patio; an extra-large bath- stores, new formats selling fresh produce room; in-store seating; uniformed employ- include Dollar Stores, DIY Home Improve- ees; high-end coffee from a local roaster; ment Stores and Mobile Trucks. “Future fresh baked goods; and 300 to 400 square ways to sell fresh produce are nearly limit- feet of fresh produce. We even had the less,” says Lorna Christie, executive vice ladies focus group help pick the color of president and chief operating officer of the our floor tiles. As a result,” Brown Newark, DE-based Produce Marketing Asso- continues, “we’ve hit success with about a ciation. “Beyond brick and mortar, we’re now 50/50 ratio of male and female shoppers. seeing online ordering of fruits and vegeta- Now we see soccer moms walking the bles in the Subways of Asia and Europe, and aisles with their handcarts.” it’s even being tested in Philadelphia. pb

PHOTO COURTESY OF NACS

“To attract the attention of health- conscious consumers who don’t normally purchase from a vending machine, colorful models have been introduced,” says Phil Masters, vice president of national accounts for the Wittern Group, a Des Moines, IA- based global leader in the vending industry. “It’s not the traditional black machines anymore. There are colorful images of healthful products on the outside and healthy product on the inside that are highly visible and delivered with an elevator system that doesn’t bruise or damage items like fresh fruits. In addition, our machines maintain product at 38 to 40 degrees, are energy-star efficient and have LED lighting to enhance the look of the product.” The vending machines offered by HUMAN Healthy Vending have 23-inch HD Video Screens capable of displaying video ads, produce information and nutrition advice designed to catch prospective customers’ attention. The company will launch touch-screen interfaces with games and loyalty programs in early 2013. Cash- less systems based on debit-like cards or even a scan of an IPhone will be the next evolution. The company’s Kelly notes, “We also require our operators to conduct educational sampling events at least once per quarter. This helps dispel consumer concerns about buying fresh foods from a vending machine.” Finally, alternate formats are reaching out to the holy grail of supermarket shoppers — women. Latitude’s Brown explains, “We conducted focus groups when planning Lati- tudes and found that 85 percent of women don’t like to go into convenience stores when they get gas. Reasons for this included dirty stores, unfriendly staff, safety concerns and an undesirable product selection. So we designed the store with a

OCTOBER 2012 •PRODUCEBUSINESS 37 Wholesale.qxd:Layout 1 9/25/12 3:52 PM Page 1

Wholesalers pride themselves on having what their customers need, when they need it. Wholesaler’s Survival Guide: 10 Ways Produce “Middlemen” Prevail

Wholesalers thrive by emphasizing strengths and adding new services. BY JODEAN ROBBINS

n today’s world of direct buying and means my customers can rely on me for customers in many channels so we see fairly fierce competition, wholesalers manage having what they need when they need it,” regular movement across all channels,” says to survive and thrive by concentrating on says Paul Auerbach, president of Maurice A. John Vena Jr., president of John Vena Inc., Iwhat they’ve always done well and adding Auerbach Inc., in Secaucus, NJ.“This allows headquartered in Philadelphia, PA. “This value to their servies. “In the produce them to make a relatively short but allows us to maintain supplies of fresh industry, there is an enhanced place for whole- predictable buying decision. We always have product ready for immediate delivery to cover salers to assist any size customer because of the the product, whether the market is short or any gaps in customers’ supply, or in some uncertainly of supply created by weather condi- not. In fact, we thrive in a tight market.” cases, to manage the inventory of an item or tions and the perishable nature of our product,” The family-run traditional produce product line for the customer.” says Matthew D’Arrigo, vice president of D’Ar- wholesaler offers flexibility. “We offer the “I don’t find being a middleman a curse, rigo Bros. of New York Inc., in the Bronx, NY. ability to change more quickly than big but rather a plus,” states Auerbach. “In our “Customers have to balance having enough but conglomerate wholesale operations,” says industry, you cannot only survive but thrive if not having too much, and a wholesaler Scott Danner, CEO of Kansas City, KS-based you ‘get it.’You provide a service and you fill provides valuable assistance in this.” Liberty Fruit Co. Inc. “Independent retailers, a need for both your customer and shipper For a wholesaler, service and an ear to the especially, don’t want to be a cookie-cutter base. If you’re doing your job right, you’re customer are everything. “That’s where a operation. They want customers to know they doing it for both. We want our customers to wholesaler survives,” states Bob Corey, CEO have something different from the guy down know they can count on us to do our home- of Corey Bros. Inc., based in Charleston, WV. the street. Flexibility is rewarded in this work and have the right product, price and “A wholesaler knows or finds out the market and many of the big retailers are not delivery for them. We give them peace-of- customers’ needs by making inquiry. Then we going to market with much flexibility. This is mind when they know they can count on us.” design a program not by what we want, but a great time for independents to shine and by what the customer needs.” wholesalers help retailers and foodservice 1. Power Of A Label Service and product availability are operators to this.” Many wholesalers offer their own brands or crucial. “Consistent service and availability “As a wholesaler, we have a range of private label. For example, D’Arrigo New York

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800-223-8080 • 718-991-5900 www.darrigony.com Wholesale.qxd:Layout 1 9/25/12 3:53 PM Page 2

For example, our strongest allies right now are West Pak Avocado Inc. for Hass avocados and The Greenery, our partner on much of our greenhouse product lines.” “Exclusive relationships help stabilize prices a little,” adds Katzman. “Also, farmers need consistency from wholesalers. If they’re only dealing with one wholesaler, the farmers can count on the wholesaler to take product, and in turn, the wholesaler counts on the farmer to supply product.” Some wholesalers are also increasing relationships with grower-partners to act as forward distributors. “If you have the space for it, forward distribution can be a terrific Indianapolis Fruit holds two annual tool for the wholesaler,” states Vena. “It events where both deepens the relationship with a shipper, and if vendors and properly managed, allows for access to inven- customers can PHOTO COURTESY OF INDIANAPOLIS FRUIT CO. tory that can be offered to customers without benefit. having to commit in advance to the product.” has had the Andy Boy brand for decades, and store is willing to Liberty packs under Mary’s Pride.“Private label put its name on it, but private label is only as 3. Promotion Expertise differentiates a retailer from the competitor and good as the product,” says Liberty Fruit’s Select wholesalers are building on gives us exclusivity,” explains Danner. “We’re Danner. “If we put the retailer label on it, we merchandising expertise, from offering mainly working with private label and our own ensure the product warrants it so consumers promotions to employing staff merchan- Mary’s Pride repack operation.” maintain confidence. If the product isn’t at disers. Liberty Fruit has nine merchandisers Auerbach packs under Auerpak, its own the highest standard — if it’s just acceptable on staff.“Often, the independents don’t want regional brand.“Both produce buyers as well as — then we won’t affix the retailer label. We merchandising help on a day-to-day basis so consumers have known our brand for many talk with the retailer about this and make we offer more select merchandising assis- years and have come to trust it,”reports Auer- decisions on daily basis.” tance,” explains Danner. “Stores prefer more bach. “We do private labeling for some stores support with seasonal changes or demo-ing and foodservice and we do some name brand 2. Exclusive Relationships products. We just did a pluot demo, and the labeling. For example, we are a Northeast Wholesalers are expanding exclusive numbers are staggering when you compare distributor for at least two national brand names alliances with growers.“Forging alliances with the tonnage selling now with last year.” and we pack and sell under their labels, which shipper brands is big right now in wholesale, Indianapolis Fruit maintains an experi- we’ve been doing for about 20 to 25 years.” but it’s not a new thing,” says Stefanie enced merchandising staff to help with Indianapolis Fruit Co., based in Indi- Katzman, executive manager for S. Katzman seasonal promotions and merchandising.“We anapolis, IN, offers private label products in Produce and Katzman Berry Corp. at the have many vendor-managed programs,” retail processed fruit and vegetables, organic Hunts Point Terminal Market, in the Bronx, reports Cunningham.“In these, we merchan- pre-packaged products and the tomato cate- NY. “Every house in the market is pretty dise, price, supply and write the promotional gory. “The vast majority of our business is much aligned with specific brands they carry schedule for the entire department or specific dedicated to growing the independent retailer consistently. This is for many reasons categories within the produce department. business,” states John Cunningham, director including taking care of the growers, giving This has been a benefit to growing our private of sales and marketing. “Our private label the customer consistent familiar brands and label product lines.” product line gives our customers categories inventory considerations.” Utilizing merchandising assistance from and product lines that are different and “By partnering with growers and guaran- a wholesaler helps trim retail budgets. unique to the larger chain retailer product teeing a mutual sale agreement, you can be “Everybody’s looking to cut cost, and having lines. Because we package and produce in- more at ease that the product will be good resources available from a wholesaler helps,” house, it gives us the flexibility to expand the quality,at a good price,”explains Angela Bader, says Danner. “Also, the family-run business item selections almost immediately as prod- marketing coordinator for Testa Produce Inc., is willing to do more out-of-the-box ucts become available.” in Chicago, IL. “The more you can trust a thinking and activities. We can make deci- Vena has long offered private brands to its vendor, the more likely you’re going to get a sions in minutes and tailor programs to foodservice customers for several lines of great product at a reasonable price.” individual stores.” custom-packed product.“In some cases we do Vena has long enjoyed“exclusive” arrange- Corey Bros. has created special promotions custom packs for retailers, but these are in ments with key suppliers. “This allows us to to endear themselves to independent grocers. commodity items and would best be described develop particular labels or items in our For example, The Great American Petting Zoo as generic and not branded,”says Vena. trading area,”he remarks.“It is important if a Supermarket Tour brings a petting zoo of up Wholesaler brands offer a quality control brand or product line is going to be perceived to 30 animals to the retailer location. “Atten- link.“A loyal customer values a product if the as having value and not just as a commodity. dance estimates exceeded 40,000 over the

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“If you have the space for it, forward 19-day tour in 2012,”reports Corey.“We work with media to provide coverage of the event, distribution can be a terrific tool for the which is offered to specific retailers in certain wholesaler. It deepens the relationship with areas.Wealso encourage the stores to add cook outs, clowns and balloons, demos and the shipper, and if properly managed, allows sampling, hot dog sales, and charity bake sales. for access to inventory that can be offered to This is a phenomenal promotion and customers love it.” customers without having to commit in Corey Bros. also offers an OSO Sweet advance to the product.” Onion campaign twice a year on a co-op ad budget created with OSO Sweet Onions. “We — John Vena, John Vena Inc. lay out the campaign to all our stores two months in advance including newspaper, radio, and TV,” explains Corey. “The customers know what will be coming and we pre-book mass displays to tie in with the ad plan and feature ads. There are full-color POP cards for all displays and 4-ft. full-color banners for 10-case displays or larger. Stores are included in advertising — a statewide 4- color newspaper ad. We’ve been doing this since 1990 and it has become a tradition in our marketplace.”

4. Increasing Product Lines Most wholesalers are evolving product lines to better serve customers. “Wholesalers used to be very commodity-specific and only handled a few items,” says Katzman of S. Katzman Produce.“Over the years, customers have begun looking more for one-stop shopping and farmers have expanded their product line. This has all forced wholesalers to expand what they carry.” Testa provides customers a wide array of product lines. “We carry fresh and frozen produce, dry goods, decorative items, appe- tizers, desserts and beyond,” says Bader. “Being able to provide a one-stop shop for customers has allowed us to satisfy the needs of our customers much more effectively.” “We see more of the customer base asking the produce wholesaler to carry dairy or frozen food,”concurs Liberty Fruit’s Danner. “They’re trying to find more one-stop- shopping opportunities.” Corey Bros. offers a fresh value-added program, pre-cut and deli salad program and floral bookings and counseling, as well as focusing on mature, flavorful products. “We make a distinction in concentrating on pre- ripened or pre-conditioned stone fruit, vine-ripened melons, pineapples and tomatoes versus greener product,”says Corey.“The taste difference is dramatic.” Wholesalers are also increasingly offering hard-to-find products.Testa has an entire section of its warehouse reserved for these unique items. “The items come in on a daily basis and are

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always evolving,” reports Bader. “We pride ago with year-round supplies of high quality specialty items for our foodservice ourselves on being able to offer our customers product. Overall consumption is certainly up, customers,” reports Danner. “They’re trying product they can’t find anywhere else.” but we still carry a premium line and our sales to differentiate. We can help fill a need or In the specialty produce business for have not dropped.” change an item with greater flexibility and in almost 30 years,Vena lives and breathes hard- Wholesalers may take a loss to satisfy a shorter time frames.” to-find items. “As the demand grows for the customer. “Customers ask for hard-to-find kind of items we like to handle, they become items and often it’s something we don’t make 5. Economy And Efficiency easier to source, and customers learn to use money on,” reports Auerbach of Auerbach. A more competitive market can play to a more of them,”says Vena.“This really benefits “They can’t get, but they need it and it’s wholesaler’s strengths and more are offering everyone in the industry as it allows our important to them, so we carry it — for additional transportation and logistics serv- customers to match items to their own demo- example, black garlic.” ices. “Especially given how much freight graphics. A good example is fresh herbs. We Foodservice operations are looking more charges have increased over the past years, were basically alone in the market 15 years for specialties. “We are carrying more logistics have made it very expensive to do multiple pickups,” explains Katzman Produce’s Katzman. “If you can’t fill up a 26- pallet truck in one or two stops, then you pay significantly extra for the truck, and that’s only if you can find a truck willing to take the order. As wholesalers, we buy in bulk, which enables us to pass the economy along to our customers. They benefit from price, selection and the logistics of putting together many items from different farms on one truck to deliver to their store.” Cross-docking is increasing as companies look to improve efficiency and cut costs. “Cross-docking with certain companies to extend product lines for customers and stan- dardizing split items to make it more convenient to purchase more manageable quantities are just two of many features we offer customers,”says Bader of Testa Produce. “Liberty Fruit serves far reaching areas that other competitors or suppliers aren’t,” says the company’s Danner. “We’re increasingly helping our neighbors by cross-docking. For example, one of our larger foodservice customers used to deliver every day to a specific operation, but when they realized we’re going there six days a week, they decided to work with us to make those deliveries.” “We continue to grow our backhaul business throughout our distribution region,” states Indianapolis’ Cunningham. “This is a current and future priority to help control costs to our retailers. Currently over 22 percent of our produce business is cross-dock — up over 13 percent in the past five years. It is very important that we continue to look for partners to help us extend our produce. Teaming with large grocery distributors has helped grow our reach to smaller retailers in the Midwest that we would not have normally been able to service.” Local and regional delivery services are also in higher demand. “Customer service includes a lot of things, but one of the biggest in our business with the cost of fuel is delivery service,” says Katzman. “A lot of wholesale

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“Consistent service and availability means my offering ripening services, is another method of expansion.“Wholesalers are always looking customers can rely on me for having what they to expand their customer base,”says Katzman need when they need it. This allows them to make of S. Katzman Produce.“We have been selling school programs, foodservice and offering a relatively short but predictable buying decision. pre-ripened fruit for years now.” Wealways have the product, whether the market is “If we are to survive, we need to consider all the competition we face,”says Vena of John short or not. In fact, we thrive in a tight market.” Vena Inc. “Fresh produce is being offered in — Paul Auerbach, Maurice A. Auerbach Inc. many new ways and venues. We have no choice but to consider all kinds of new serv- companies have put on their own fleet of incorporated into the operations of the ices and distribution channels. In response to trucks just to service their customers.” facility,”says Bader.“Many features, including this, we built ripening facilities in partnership “Though we’ve been doing it for 20 years, our free-standing wind turbine, solar trees, with our avocado supplier, West Pak Avocado we’ve been getting more and more into the methanol fuel cells, and LED office lighting Inc. We are confident these facilities will allow delivery business recently,” reports D’Arrigo are the first of their kind, especially in the City us to deepen our customer relationships.” Bros’ D’Arrigo. “It is a growing service.” of Chicago. Testa is the First LEED Platinum New business can be developed in many Some wholesalers, such as Testa and Auer- Refrigerated Foodservice facility in the areas. Corey of Corey Bros. explains, “We are bach, have built new facilities to set them nation, and that title helps us to stay ahead of positioned to back-up a chain store versus apart from the competition.“Our new facility the competition.” delivery to a warehouse and to service inde- makes us state-of-the art in food safety, Of course, Vena’s company benefits by pendent retail stores, independent restaurants, packing areas, docks, and other infrastructure being among the wholesalers sharing space on chain restaurants, hospitals, prisons, schools, and puts us in a position to be a valuable the new state-of-the-art Philadelphia Whole- country clubs and resort hotels.” trading partner to both customers and sale Produce Market. “We are doing more with schools now growers,”says Auerbach.“We’re able to offer a than in the past,”adds Liberty’s Danner. variety of services at a high level.” 6. Customer And Channel Diversity “Our building is state-of-the-art based on Diversifying into new channels including 7. Vital Information the advanced green, sustainable technologies schools, institutions and tourism, along with Wholesalers offer vital market informa-

46 PRODUCEBUSINESS• OCTOBER 2012 Jerry Porricelli.qxd:Layout 1 9/14/12 3:36 PM Page 1

Celebrating Our 14th Anniversary On The Hunts Point Market

JERRY PORRICELLI CARMELA & ANGELO PORRICELLI CIRO & ANGELA PORRICELLI

For three generations, the Porricelli family has taken pride in offering the finest quality produce. We continue to dedicate ourselves to providing the best customer service and value... from our family to yours.

Specializing in: Fresh Herbs • Arugula • Basil • Dandelion • Radicchio • Corn • Blueberries • Coriander Plum Tomatoes • Grape Tomatoes • Sun Beauty Yams • Little Bear Vegetables • Pontano Farms

718-893-6000 • Fax: 718-893-0158 Ciro Porricelli • Angela Porricelli 342 Row C, Hunts Point Market • Bronx, NY 10474 Wholesale.qxd:Layout 1 9/25/12 3:54 PM Page 6

how it may affect the product, etc. We have the inside scoop.” “We’re experts on what’s coming on, what labels to go to and what’s the right fit for a buyer,” adds D’Arrigo. “We manage vital information on crops and market supply — that’s how we tick.” Wholesalers including Testa and Liberty offer weekly market updates to keep customers informed. “The report is full of product information, industry market changes, weather patterns, and price predic- tions,” says Testa’s Bader. “We also keep customers up-to-date regarding food safety recalls, quality issues, and what’s new and in season. Open communication with customers helps us let our customers know what to expect and helps our buyers better predict availability and pricing of their purchasing.” tion on a timely basis. “Communication is keep them in the loop on what items they “Liberty issues a weekly market update to how buyers get the most from their whole- should go on sale with; what items are going every one of our customers,”reports Danner. salers,” says Auerbach. “We try to maintain a to go up or down in supply and price; and “We help buyers understand and respond to high level of communication with our what items are going to be good quality-wise market changes. We’re also a leader at being customers to let them know if weather condi- and why,” says Katzman. “We are in direct in front of recalls.” tions, regulations, or other factors might communication all day long with our Corey Bros. offers market price surveys, affect a particular item. We’re constantly farmers. We know about production volumes retail purchase summaries, and analysis to monitoring these things.” today; what they’re expecting over the next help customers understand how to better “We do all the research for customers and couple of days; weather on the farms and manage shrink. “We work with customers to

48 PRODUCEBUSINESS• OCTOBER 2012 Acompora.qxd:Layout 1 9/14/12 1:07 PM Page 1

Be Aware and Be Prepared

Undetected and unexpected, Sudden Cardiac Arrest (SCA) is claiming our youth. Cardiovascular disease is the second leading medical cause of death in children and adolescents in the United States. Data estimates that 1 in 50 high schools have a SCA in a student on school grounds each year. Affected youth usually appear healthy and normal…until they have an arrest. The good news is that early detection is possible, heart conditions are treatable and young lives can be saved. Knowledge of the observations and actions that can make the difference between life and death are key to a successful outcome.

Early detection is crucial. The Louis J. Acompora Memorial Foundation promotes the early detection of heart conditions in youth through heart screenings. Frequently, the warning signs and symptoms of a heart condition in youth go undetected.

Most occurrences of SCA in youth occur in public places. The increased availability of publicly accessible automated external defibrillators (AEDs) in schools and school-sponsored athletic events will dramatically increase the probability that youth and adults alike will survive a sudden cardiac arrest. Knowing and properly executing the critically time-urgent links of the Cardiac Chain-of-Survival can help save the life of someone in SCA.

In June of 2002, Governor George Pataki of New York signed Louis’ Law, which requires AEDs in all New York public schools. To date 62 lives have been saved as a direct result of this law in New York public schools. Each time a vibrant, seemingly healthy child suffers a Sudden Cardiac Arrest (SCA), the Louis J. Acompora Memorial Foundation mission of protecting youth from SCA and preventable Sudden Cardiac Death (SCD) becomes even more critical. We know it happens and we need to collectively assure others realize it by sharing our Mission and Vision.

1. Early Recognition of Sudden Cardiac Arrest • Collapsed and unresponsive • Seizure like activity • Gasping, gurgling, snoring or labored breathing noises 2. Early Access to 9-1-1 • Confirm unresponsiveness • Call 9-1-1- and follow emergency dispatchers instructions • Call any onsite Emergency responders 3. Early CPR • Begin cardiopulmonary resuscitation (CPR) immediately 4. Early Defibrillation • Immediately retrieve and use an automated external defibrillator(AED) as soon as possible to restore the heart to its normal rhythm 5. Early Advance Care • Emergency Medical Services (EMS) Responders begin advanced like support including additional resuscitative measures and transfer to a hospital.

THESE STEPS WILL SAVE A LIFE PLEASE TAKE THE TIME TO KNOW THEM AND LEARN CPR. Contact the Louis J. Acompora Memorial Foundation for more information www.LA12.org Wholesale.qxd:Layout 1 9/25/12 3:54 PM Page 7

maximize the produce department,” says Corey. “This includes determining best “Forging alliances with shipper brands is big product mix for the store; the best combina- right now in wholesale, but it’s not a new thing. tion of gross profit and distribution that can be achieved for the specific store/area; Every house in the market is pretty much aligned providing an on-going program of increased with specific brands they carry consistently. This product awareness and in-store assistance to help achieve overall sales; and setting is for many reasons including taking care of the merchandising, profit and customer satisfac- growers, giving the customer consistent familiar tion goals.” The flexibility and directness of the whole- brands and inventory considerations.” sale business may mean quicker access to — Stefanie Katzman, S. Katzman Produce information. “We can often have a quicker response and correction of an issue,” states customers to last minute opportunities or our retailers.” Corey. “Service does not necessarily always what some might call ‘sizzlers’,” says Vena of Indianapolis Fruit is also actively involved mean more frequent and timely delivery, but John Vena. in social media and website tools. “Our how quickly you can react to correct a newest and most exciting venture is our new problem or find a solution.” 8. Making A Show consumer blog called The Produce Mom, “One of the most valuable things we Wholesalers are also creating events which has helped educate consumers across offer is accessibility to personnel,” adds where vendors and customers can benefit. the nation,”says Cunningham. Danner of Liberty Fruit. If any one of our Indianapolis Fruit currently holds two Additionally, wholesalers take advantage customers wants to talk to our strawberry events a year. “Our first event in the early of industry shows to promote business. buyer, they have a direct link. A retailer spring is to educate our retailers on the “PMA’s Fresh Summit has always been a great thinking about doing strawberries in two hottest topics for the year such as food safety, food show to link farmers, wholesalers, and weeks can talk directly with our buyer to organic, locally grown sales growth and cate- retailers together,” relates Katzman of S. find out more about what the market is gory management training,” explains Katzman Produce. “For two years now, The going to be like then.” Cunningham.“The second is geared to help New York Produce Show and Conference has “We are particularly good at alerting our the suppler showcase their new products to given local wholesalers like us the ability to

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10. Strength In Cooperation Wholesalers both on and off markets rely on each other for sourcing. “We sell each other, but we’re not piggybacking orders,”says Danner. “For example, if our competitor is short 50 spring mix, he’ll call us up and we’ll sell to him and the same holds true in reverse.” Vena has long considered competitors in the Philadelphia Market as a source of inventory. “We buy all day, every day from them,” reports Vena. “It smoothes out the wrinkles in our inventory and provides a service to customers if they are short. In the past couple of years, we have developed two-way trading relationships with companies PHOTO COURTESY OF TESTA PRODUCE outside of the Philadelphia Market and the reach out even more because the show is very “Packaging and repacking is the wave of city itself. In cases where there is reliable personal and tight-knit.” the future,” agrees Katzman. “Everyone is transportation, we have found this to be a heading in that direction because it is easier way to offer even more diverse lines and 9. Packaging And Repacking for the consumer.” brands to our customers.” Packaging and repackaging is a growing However, packing and re-packing is a Though Testa is off the terminal market, it service for wholesalers. “With all the food tricky issue. “In some areas, this type of relies on the Chicago produce market to help safety issues, I think we’re going to see a resur- service is limited since many market condi- fill orders. Bader states,“It’s more convenient gence of overwrapped product,” suggests tions prevent HACCP-certification,”explains for the on-terminal guys to trade among Danner.“More overwrapped and pre-wrapped Katzman. “Buyers want strict food safety themselves since they are all right there, but product will warrant more regional repacking standards for all their packaged or repack- it’s not uncommon for off-terminal entities to ensure the quality of the product.” aged items.” to get into the mix as well.” pb

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Clear rigid packaging and bags allow consumers to see the product clearly. Consumer Packaging: Five Things To Consider With consumer and retailer requirements rising, the packaging industry is making strides to meet their needs. BY BOB JOHNSON

ackaging is becoming more and quality of the food contents,” explains Jack and it keeps everything fresh from the time more pervasive throughout the Tilley,market research analyst at Inline Plastics consumers purchase the salads over the produce department. Lettuce, and Corp., based in Shelton, CT.“Our two newest weekend until they use them for a brown bag Pits many cousins with exotic product lines, Visibly Fresh and Crystal Fresh, lunch later in the week. For retailers, there is a sounding names, is routinely were introduced to meet these needs. ‘foot’ on the Ready Pac Bistro Bowl Salad merchandised in clear rigid plastic. Strawber- The key is packaging that lets the package, which facilitates easy upright ries are so widely presented in snap-closed consumers feast their eyes on the produce. merchandising of the bowls without a clamshells that green plastic baskets have Tristan Simpson, director of marketing at springload. The upright merchandising show- become a memory, and tomatoes are now Ready Pac Foods Inc., headquartered in Irwin- cases the fresh, value-add ingredients in each more widely sold in rigid clear plastic. And dale, CA, remarks, “Consumers purchase bowl, which ultimately attracts more then there’s the growing popularity of fresh- fresh-cut produce with their eyes, and ‘fresh- consumers to the shelf.” cut fruit, which has to be in plastic, or the juices ness’ is the No.1 reason for selecting a The ability to see the product clearly is will end up everywhere. particular package. Providing a clear view into important to produce suppliers, especially to As consumer packaging continues to a package is important for consumers to be those who believe they offer something that is become a more important part of the produce able to make an informed choice at the shelf. a cut above. “We currently use clear plastic; trade, here are five questions to ask when eval- Ready Pac’s fruit, vegetable, snack and salad we’re proud of our product and want people uating packaging. rigid containers are all made with clear PET to be able to see it,” says David Nelson, vice and carry the recycle symbol.” president of sales at Bard Valley Medjool Dates, 1. Does The Packaging Provide Ready Pac offers a salad bowl that snaps located in Yuma, AZ. If the produce looks A Window To The Produce? tight, but is transparent to allow a view of the good, it helps if the package does, too. Packaging creates a barrier between the salad.“Our proprietary Single Seal Technology, The importance of letting produce make a consumer and the produce, but it can still which we use for our Ready Pac Bistro Bowl visual impact is making clear packaging the allow consumers to see the product.“The trend Salads, is the newest technology,” continues wave of the present.According to Carol Zweep, has been toward more upscale rigid, clear Simpson. “It allows us to use minimal pack- manager of packaging and food labeling serv- plastic containers that promote more attrac- aging so consumers can see all the fresh ices at Guelph Food Technologies, located in tive product merchandising and highlights the ingredients inside the bowl and the topper tray, Guelph, Ontario, Canada, “Clear packaging

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“When it comes to the best visual appeal, I can are specifically designed to leave a wide open, clear window on all our bagged salads so say without a doubt that the package that clearly consumers can view the lettuces and make an shows off the contents is the best way to go when informed choice.” Clear bags, clamshells and other rigid pack- it comes to fresh. That’s why clear plastic bags, ages have the edge because they let produce clear stand up pouches and clamshells have been show its freshness.“When it comes to the best visual appeal, I can say without a doubt that the preferred method for retailing.” the package that clearly shows off the contents — Roy Ferguson, Chantler Packaging Inc. is the best way to go when it comes to fresh,” asserts Roy Ferguson, CEO of Chantler Pack- offers the best visual appeal for fresh produce GreenLine branded fresh-cut vegetables in a aging Inc., in Mississauga, Ontario, Canada. consumers to see the quality of the product. variety of packaging formats including film “That’s why clear plastic bags, clear stand up Clamshells and bags offer new ways to pack bags and trays,” shares Cali Tanguay, director pouches and clamshells have been the fresh produce instead of an open basket. You of marketing and technology at Apio Inc., preferred method for retailing.” can see the product from all sides; the product headquartered in Guadalupe, CA. Eye- Mesh packaging is another option that is protected; and the PET material is recy- catching designs with crisp, clean printing and provides both convenience and a good look at clable,” she details. clear visibility of the product for maximum the produce. “Visual appeal is always going to Some packaging can even effectively incor- focus on vegetable quality helps to grab the be a factor when you’re talking about retail porate graphics, which helps the product sell consumers’ attention. Each package is sales; I still think the best visual appeal for itself.“Consumers are attracted to images that designed for maximum visual appeal, as well produce is mesh packaging,” says Aaron Fox, tap into their passion, be it with nostalgic or as function.” executive vice president of Fox Packaging Co., visual cues; appeals to their senses, such as Other packaging suppliers agree that located in McAllen, TX. scented packaging; and interactive packaging, graphics should be designed to leave enough like those with QR codes,”Zweep details. space to offer a window to the produce. Ready 2. Will The Packaging If graphics are used on the package, it is Pac’s Simpson emphasizes,“For bagged salads, Help The Produce Last? important to also leave enough clear space to seeing the fresh lettuces inside is equally as The amount of food that is grown, see the product.“Apio offers its Eat Smart and important in making a selection. Our graphics harvested and shipped, only to be thrown out

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is a seldom-discussed tragedy of the world line of packaging, Prime Pro, extends produce convenience when it comes to multi-pull use food supply system.“The most important issue life by removing ethylene gas. or convenience of preparation.” being faced by every country in the world is To help reduce this scandalous waste, good Most consumers and producers have found that of rampant food waste,” contends packaging protects and preserves the product that recloseable rigid plastic containers do Ferguson. “It is, by far, the biggest consumer both on the way to the store and in consumers’ better than bags when it comes to keeping packaging challenge. Currently, 50 percent of kitchens. “A clear package will undoubtedly produce items like leafy greens fresher longer. the food we purchase goes into the trash; we prompt purchasing of fresh produce items, but Steve Langdon, vice president for sales at Preci- can no longer afford such waste in an ever- this is only one part of the equation,” says sion Packaging Products, in Holley, NY, says, growing world.According to statistics, between Ferguson.“The package must protect the item “We make sure the product is protected, and five and nine percent of the produce at store as it travels to the store. It has to be in a format we continue to expand the shelf-life. We hear level goes into the dumpster, resulting in so it can be retail-ready and displayable. Ideally, from the industry — from the big producers millions of dollars a day in waste.” Chantler’s the package should afford the consumer some like Dole and Fresh Express — that consumers get a longer-lasting product in the rigid plastic than in the bag.” It’s important to consider that many produce items need to be able to breathe in order to maintain their freshness. “On certain items, shelf-life has to do with the amount of ventilation to allow gases to escape,”says Kurt Zuhlke Jr., president and CEO of Kurt Zuhlke & Associates, headquartered Bangor, PA. Shelf-life, and the reduction of waste, can be related to packaging that makes the produce more convenient to use at home. “GreenLine and Eat Smart offer steam-in-the-bag convenience for 10- and 12-oz. ounce packages, while larger Eat Smart bags and trays utilize Apio’s own BreatheWay technology in order to naturally extend shelf-life,”explains the company’s Tanguay. “Exceptional value is provided to retailers as well as consumers by providing fresh vegetables in packaging that is appealing on the shelf and convenient for consumers to utilize after purchase,”Tanguay says.

3. Does The Packaging Make It Easy For The Consumer To Purchase, Transport And Store The Produce? As more people believe they have less time every day, convenience continues to be a mega trend and produce packaging must follow. Zuhlke pintpoints, “The trend in produce packaging is convenience, shelf-life and sustainability.” The need for convenience is behind much of the increase in packaging in the produce department. “When consumers need to purchase an item, they need a package that makes it easier for them,”continues Zuhkle. “Take a four-pack tomato container. It makes it easier to put the tomatoes in the cart without having to handle each one; easier to take home without damaging them; and easier to put them on the shelf in the kitchen rather than in the refrigerator.” Microwaveable packaging is one response to the need for more convenience. “Ready Pac offers its mature Spinach in a microwaveable bag, providing consumers with the ease of

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cooking and serving straight from the bag,” produce appear to be safer. Scattini advises, located in Elk Grove, IL.“The new‘peel/reseal’ Simpson says. “Make sure you have a firm button lock, so the technologies allow produce processors to apply Steam packaging leads the way when it package doesn’t pop open in the store.” a lidding film to a tray that incorporates an comes to offering produce in a ready-to-cook There are new technologies that will revo- intuitive opening and closing feature. It can be package, and yet, Ferguson admits, “I am not lutionize packaging that is sealed for used with a variety of cut fruits, vegetables and aware of any recent developments when it protection, but can easily be opened and leafy greens. The peel reseal film is automati- comes to steam packaging. It’s a lamination, resealed at home. “The latest technology cally applied on tray-sealing equipment. It can and in some cases, the package has a steam entering the market now is designed to elimi- be used in conjunction with modified atmos- venting system.” nate rigid lids and shrink bands, reduce phere packaging to help in extending the Nonetheless, it is the venting that makes package weight, provide tamper evidence and freshness of the produce being packaged,” he steamable packaging possible that is finding recloseability,” details Roman Forowycz, chief continues.“Consumers understand how to use more uses.“There is nothing new in the way of marketing officer at Clear Lam Packaging, it without lengthy directions. By eliminating steam packaging, but self-venting packaging for pouches is becoming more popular,” says Guelph’s Zweep. Convenience in transport and home storage is helping to increase the popularity of rigid plastic packaging. “The continuing growing trend is that consumers like the convenience of rigid plastic packaging,” says Precision Packaging’s Langdon. “It travels, stores and displays well. Cut fruit needs a container, and they are a natural for clear plastic. It is primarily PET, but there is some corn-based.” Another convenience on the horizon is single-serving packages of produce that is ready to eat. According to Jim Scattini, vice president of sales and marketing at Sambrailo Packaging, based in Watsonville, CA.“They are both for people on the go and kids’ lunch boxes. To that end, they are perfect for blueberries and strawberries.” The individual-serving packaging is still in the testing stage, so stay tuned.“Things are still in the development stage for both the production and marketing sides of individual packaging,” reports Scattini. “We’ve got to get to the right price point. We’re testing that now and the jury is still out.” At the other end of the spectrum, there is also movement toward more of the club-sized packages in supermarkets. “You’re seeing a push for different sizes of packaging for blueberries, strawberries, blackberries and raspberries,”adds Scattini.“There are definitely more of the club store sizes at retail. The acreage, yield and tonnage are all increasing, so supermarkets are sometimes using club sizes since that’s a way to move more product.” These club-sized packages hold up to four pounds of strawberries, or up to two pounds of blueberries.

4. Does The Package Make The Food Safe And Enhance Consumers’ Perception Of Safety? Food safety is another crucial issue, and packaging plays a major role in making

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Single Seal Technology, as on our Ready Pac “In the future, we will be seeing flexible Bistro bowl salads. We fit the tamper-evident packaging that retains many attributes of rigid solution to the product and the package.” Consumers also want the security that packaging. The goal is to create a lighter package comes from knowing where their food was that is stackable, rather than a stand-up pouch. grown. “From consumer’s poinst of view, they’re looking for the PTI, to be able to trace The new packaging would provide enhanced the produce back to the field and have that visibility and would protect the product inside.” information right on the package,” says — Roman Forowycz, Clear Lam Packaging Kathryn Maher, vice president for business development at Innoseal Systems Inc., located in Charlotte, NC. “I’m seeing more date- pre-formed rigid plastic lids and shrink bands, bands, the packaging must be heated, which coding, PTI information and more private the industry can reduce weight, truck ship- undermines the cold chain, adds Langdon. labels on the packages than before. People are ments and carbon footprint to create a more Inline Packaging also has its own line of doing more private label even if they are fairly efficient supply chain.” tamper-evident packaging.“Our Safe-T-Fresh small because it’s so competitive out there.” Tamper-evident packaging has to be the line has been on the market since 2006,” says There are economic reasons for private label norm for fresh-cut produce, because Tilly. “Now, Inline is extending the Safe-T- packaging, but it also offers an opportunity to consumers are not going to take the produce Fresh line to additional packaging, such as make a visual impact. “Stores are going more home and wash it before they eat it.“Ready-to- Sandwich Wedges and grab-and-go Snack private label, and trying to give it a look that eat produce like cut fruit and washed lettuce Cup containers.” reflects the store,”says Fox of Fox Packaging. need to be secured so consumers know they There are numerous ways the package can The need for economy is also fueling more have not been tampered with,”asserts Precision guarantee that the contents have not been use of bags to merchandise produce. Maher Packaging’s Langdon. “New tamper-evident tampered with. Simpson notes, “All of Ready reports,“I see three-count lettuce in bags, and packaging offers an alternative to PVC shrink Pac’s packages are tamper-evident, either by avocados, too, where I used to see them loose bands that is more cost-effective.With ours,the using a shrink band around the lid, as on our in a box. I’m seeing bananas in bags, too. I food processor welds the lid to the package,and fresh-cut fruit bowls; a ‘freshness seal,’ as on think there may be a food safety component; we provide a tear strip.” With PVC shrink our organic rigid containers; or the use of our people may feel the food is safe if it is in a bag.

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Plus, the bag is cheaper than the plastic stackable, rather than a stand-up pouch. The clamshell, and consumers feel they are getting new packaging would provide enhanced visi- more.” bility and would protect the product inside.” A smaller step in the direction of reducing 5. Is It Sustainable? materials used in packaging is to more effi- Sustainability is not a fad. It has stood the ciently design rigid plastic packaging. “Rigid test of time and become another important plastic packaging has historically provided component of the produce industry that is maximum visibility for fresh produce,”notes here to stay. Many consumers do not know Forowycz. “Smooth, rounded squares or what they mean by sustainability, but they rectangles typically are most effective. By know it when they see it. And they want to see eliminating ribs, consumers can have a clearer it. “Sustainability is a big concern among view of the product inside the container. By consumers,” recognizes Zuhlke of Zuhlke & using smooth rectangles or squares versus Associates. PET can be recycled and used again rounds, the shipping and merchandising and again. There is growing interest in pack- space is better utilized.” aging made with recycled PET.” Part of sustainability is making the pack- PHOTO COURTESY OF Recycled material for packaging has PWP PACKAGING aging look sustainable. “There’s a trend to try become so popular, in fact, there is not enough to make the packaging look less involved, to of it to meet the demand. “The demand for make it look more environmentally concerned,” post-consumer recycled is exceeding some- Fox says. what the supply,”reports Precision Packaging’s The whole question of packaging, unfortu- Langdon. “A significant percentage of clear recycled content.” nately, insists on getting more complicated. plastic includes post-consumer recycled mate- Another step toward sustainability is pack- Consumers want produce that is safe, and rial. More than 25 percent of the packaging aging that uses less material from inception. appears to be safe, and they want convenience used in marketing cut fruit, leafy greens, “In the future, we will be seeing flexible pack- in transporting and storing their food. But vegetable trays and strawberries has some level aging that retains many attributes of rigid there is still something attractive about being of post-consumer recycled content. We can packaging,” remarks Clear Lam’s Forowycz. able to touch and smell our produce before we vary from zero to 100 percent post-consumer “The goal is to create a lighter package that is buy it. pb

OCTOBER 2012 •PRODUCEBUSINESS 57 New Salad Trends.qxd:Layout 1 9/25/12 4:08 PM Page 1

The packaged salad category fills consumers’ needs of health and Salad Category convenience. Continues To Expand

New innovations have helped expand the packaged salad category, leading to more sales opportunities. BY LISA WHITE

uring the beginning of the reces- options and complete kits are driving the “Agrowing number of consumers have a strong sion, it seemed that the packaged growth in this category,”says Burge. desire to support companies that have consci- salad category could be headed Another benefit is the pricing of these entious business models and farming practices Deither toward stagnation or a salads, which has been declining at the retail that support a better world.” major overhaul. An increasing level in the past few years, remarks Craig Hope, “Organic is now a mainstream segment number of consumers switched to lower- chief customer officer at San Juan Bautista,CA- within the packaged salad category and is priced bulk lettuce and salad toppings to save based Earthbound Farm. readily available,”says Tristan Simpson,director money, looking at pre-made salads as an The recent success in this segment also is of marketing at Ready Pac Foods Inc., in Irwin- unnecessary convenience. Now the tide has due to a number of packaged salad subcate- dale, CA. In response to increasing consumer turned, and though some consumers continue gories that have emerged and expanded. interest in organics, the company is launching a to focus on price, many have become aware of line of Ready Pac Bistro organic bowl salads value and are drawn to the variety of packaged Increased Interest In with varieties such as Orange Ginger Tofu, salads now in the marketplace. Natural And Organic Zesty Harvest Grains, and Honey Mustard According to John Burge, vice president of Nearly 75 percent of consumers purchase Spinach with 100 percent organic ingredients. sales and marketing for Watsonville, CA- organic products, and 41 percent of shoppers In addition to organic, all-natural packaged based Classic Salads LLC,“From 2008 to 2010, are buying organics more than they were a year salad lines also are expanding, due to increasing the entire category was flat. Now, with a ago, according to the Organic Trade Associa- consumer interest. In 2010, Dole Fresh Vegeta- recovery going on, people are willing to spend tion’s 2011 Organic Industry Survey. What’s bles Inc.,in Monterey,CA,reformulated its salad more on convenience.” more,the growth of organic food as a whole has kits with all-natural ingredients in response to Sales reflect this point of view. In the 52 helped increase sales of organic packaged research showing that many salad consumers weeks ending July 8, 2012, dollar sales of pack- salads. Sales of organic salads are growing at 13 were skeptical about the wholesomeness of some aged salads totaled close to $3 billion, according percent, while conventional salad sales are toppings and dressings. The new line contains to Symphony IRI, a Chicago, IL-based market down about 1 percent, according to no artificial colors, flavors or preservatives. research firm. This was almost a 3 percent Nielsen/Perishables Group, a research firm increase from the prior year. based in West Dundee, IL. “The exciting thing Growing Specialty Salads The focus on convenience and eating is the organic segment has the consumer Specialty salads/tender leaf greens now healthier has had the greatest impact on the momentum, as many consumers are reaching represent the biggest share of the salad category packaged salad segment. “Both organic salad for healthy food options at all levels,”Hope says. at 30.3 percent. Romaine- and iceberg-based

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Healthier Greens tionally dense,tender leaf green that consumers There has been increasing interest in pack- can’t get enough of organically right now,” aged salads containing darker, healthier greens reveals Hope.“Weare seeing great trends across that further enhance nutritional profiles. Both all retailers with what we are starting to define the organic and conventional spinach cate- as Power Green components packed with gories are reporting strong growth, up 27 and 9 nutritional benefits.” percent, respectively, in the 52 weeks ending Spinach and spinach-based salads have July 14, 2012, according to Nielsen. remained a mainstay of Dole’s packaged salad “Spinach is the No. 1 selling salad blend line. One of the company’s most successful and is also the fastest growing,”reports Ready recent introductions, the Spinach Cherry Pac’s Simpson. Almond Bleu All Natural Kit, launched in late Spinach also is the biggest selling item at 2010, combines baby spinach leaves with blue Dole’s Endless Earthbound Farm. “Spinach is a great, nutri- cheese crumbles, dried whole cherries, sliced Summer salad kit includes new additions like

PHOTO COURTESY OF DOLE roasted sunflower FRESH VEGETABLES INC. kernels, artisan salads represent 18.6 croutons and two kinds of cheese. percent and 16.8 of sales, respectively in the last 52 weeks ending June 23, 2012, according to Nielsen. Manufacturers also are noting a growing preference of salads with vegetable toppings. “Increasingly,salad users prefer the varied taste and texture of salads with vegetables over those consisting of lettuce blends alone,” says Chris Mayhew, director of marketing for Dole Fresh Vegetables Inc. “Beyond simply having an affinity for salads brimming with vegetables, these enthusiasts cite personal health and wellness goals, including increasing their daily servings of fruits and vegetables, as the main reasons behind the trend.” Dole’s research has also found that while salad users are passionate in their preference for more vegetables in their salads, they are equally adamant about the loss of crunch and flavor that often distinguishes lettuce and produce mixed in the same bag. Faced with the incon- venience of buying, washing and prepping vegetables separately, as well as the risk of preparing too much produce for a single serving, many users forgo adding vegetables to their salads altogether.This led to the launch of Dole Extra Veggie Salads earlier this year. This new line combines blends of lettuces with up to two cups of fresh vegetables per bag, aimed at satisfying the USDA’s daily vegetable require- ment. “We’re always looking for new taste and ingredient combinations to inspire consumers to new heights of salad creativity and experi- mentation,” Mayhew says.“We’re investigating ways to help consumers turn our salads into salad meals — either through compelling new recipes that pair our products with lean protein, or by working with our chefs and product development experts to explore adding protein directly to our bags in the future.”

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includes Chef Salad, Chicken Caesar, Santé Fe Style Salad,Turkey Cobb and Bacon Salad,Cran- berry Walnut, Spinach Dijon, Italian and Smokehouse BBQ. The salad toppings are packaged separately from the lettuce in a topper tray.

Private Label Potential Within packaged salad, private label is the second largest brand accounting for 28 dollar Spinach, arugula share points of total packaged salads. In the 52 and other dark weeks ending July 14,2012,dollar share of these greens are products rose 3.5 share points versus a year ago, growing in PHOTO COURTESY OF CLASSIC SALADS LLC according to Nielsen. popularity with salad-lovers. As a point of reference, within the fresh almonds and White Balsamic Vinaigrette tional value with produce department, private label accounts for dressing. Also in 2011, Dole introduced an the combination of 20 percent of total sales, according to the 2011 arugula blend for consumers looking for a ingredients,”contends Hope. report Private Brands U.S. Outlook: Flash in the tangier, bolder taste experience. “Like our Due to new introductions and innovations, Pan or the Real Deal? The economy has helped spinach blends, arugula satisfies a unique Dole’s All Natural Salad Kit sales continue to private label sales by stimulating consumer consumer niche, and allows us to capitalize on grow annually. In 2011, the company intro- interest and directing retailers’ focus on store the growth of the lettuce variety in restaurants,” duced two new kits that became its most brands. In a recent Nielsen study, 75 percent of explains Mayhew. popular. The Endless Summer All Natural Kit consumers viewed private label as a good alter- “In the up-and-coming category, we’re also includes romaine lettuce blended with native to branded,and nearly 60 percent felt the seeing some real excitement around the hardier shredded carrots and red cabbage, in addition quality was even better than the national brand. greens like mixed baby kales and our Power to shredded Swiss and Gruyere cheeses, roasted “Private label gives retailers the opportunity Greens pack that include kale, spinach and sunflower kernels, artisan-style croutons and to create a point of difference from its market chard blends,” reports Earthbound Farm’s herb seasoning, topped with Summer Vinai- competitors by offering unique blends of Hope. “These greens in their baby form are grette, which is a white balsamic-flavored lettuces and recipes that can only be found at tender and sweet enough for salads, while also dressing. Dole’s product-development their store,”reasons Ready Pac’s Simpson. standing up to cooking. Consumers appreciate emphasis on salad kits will continue with Private label is growing in stores where the flavor, versatility and nutrition.” Spinach, several product offerings to be announced later retailers are committed and making the promo- kale, red and green chards and beet tops have this year.“The reformulation of our kits to all- tional and item investment to attract and keep become more popular not only because of the natural ingredients in 2010 also helped fuel the the consumers in the format.“If private label is nutritional benefits, but also due to the attrac- consumer popularity of our kits line,”Mayhew just an item selection and pricing process, then tive colors these salad ingredients provide. says.“This growth proves that salad lovers want we are seeing very different — or poorer — not just the lettuces and vegetables, but also the results versus retailers that are supporting Convenient Kits nuts, croutons, cheeses, seasonings and dress- organic private label decisions with shelving Approaching the economic downturn, a ings to be all-natural.” strategies, placement gains, space for aggressive lack of innovation,reduction in promotion and Manufacturers have focused on further sales advancements, promotional plans, part- an increase in retail price put traditional pack- innovation in salad kits, which now offer a nership, etc., and implementing good solid aged salad kits in a vulnerable position. In fact, number of condiment and dressing flavors, the merchandising standards,”Simpson says. until recently,the salad kit segment was experi- addition of dried fruit, a variety of nuts and According to Burge, many of the major encing double-digit sales declines. This is no different cheeses.“There also are more proteins national supermarket chains have begun longer the case, and overall, sales of salad kits as part of the salad kit category,” says Classic carrying organic private label clamshell salads, are up 6.9 percent in the 52 weeks ending June Salad’s Burge.“It’s easier to provide consumers due to the sales potential of private label pack- 23, 2012, according to Nielsen. with unique toppings within this format.” aged salads. “Private label is really growing, Earthbound Farm’s kit sales have more than Through market research, Ready Pac although the numbers are difficult to break doubled over the past year since the introduc- Produce discovered that consumers have down,”he says. “Nine out of the Top 10 major tion of its new PowerMeal salads. Positioned as regional flavor profiles and look for restaurant- supermarket trends offer private label salads a complete meal, the line includes vegetarian inspired ingredients as an indicator that the kit because this helps differentiate their offerings.” proteins, like quinoa and legumes, in addition is a premium offering.The use of meats beyond With the growing potential of packaged to bold flavors. Varieties include Blueberry & chicken and the addition of fresh fruit bring a salads through innovations in subcategories, Quinoa with Spinach, Wheatberry/Bulgur & restaurant-inspired element to Ready Pac’s including organic and natural products, salad Cranberries with Spring Mix, and Tomatillo Premium Salad Kits. Varieties include Apple, kits,healthier mixes,specialty salads and private Black Bean with Corn Salsa and Baby Lettuces. Blue Cheese Pecan,Southwest,Supreme Caesar, label brands, this segment continues on an “I think the only way salad kits will really Royal Parisian, Italian and Waldorf. upward path. The appeal of these products succeed is to offer consumers meals that aren’t Additionally, Ready Pac recently launched to consumers seeking both value and conven- simple for them to make themselves at home threenewvarieties,includingAsianStyleChicken, ience will result in increased sales in the and something that delivers additional nutri- Mediterranean and Caesar Lite. Its line also coming years. pb

60 PRODUCEBUSINESS• OCTOBER 2012 PMA Foundation.qxd:. 9/14/12 4:03 PM Page 1 Red River.qxd:Layout 1 9/26/12 11:43 AM Page 1

Red River Valley Growers Confident In Providing Quality Red Potatoes

Retail promotions on the table, despite challenges from Mother Nature. BY BILL MARTIN

TOP ROW (L-R): KIMBERLY BJORNSTAD, ASSOCIATED POTATO GROWERS; PAUL DOLAN, ASSOCIATED POTATO GROWERS; RANDY BOUSHEY, A&L POTATO CO.; STEVE JOHNSON, NOKOTA PACKERS; STEVE TWEETEN, NOKOTA PACKERS. MIDDLE ROW (L-R): GREG HALL, J.G. HALL & SONS; GREG HOLTMAN, APG; JAMES KERIAN, KERIAN MACHINES; JIM LEQUIRE, ASSOCIATED POTATO GROWERS; MIKE RERNICK, NOKOTA PACKERS. BOTTOM ROW (L-R): CHUCK GUNNERSON AND TED KREIS, NORTHERN PLAINS POTATO GROWERS ASSOCIATION; GREG GROVEN, BLACK GOLD; RICK HOGAN, HUGO'S; DAVE & ANDY MOQUIST, O.C. SCHULZ & SONS.

t has been one of those years in the Red based Joe Caputo & Sons Produce Inc., with potatoes from the Red River Valley. River Valley with hotter weather and three Chicago area supermarkets. He kicked off The Red River Valley annually plants less rain than many growers and ship- the new red potato season over the Labor Day about 24,000 acres of fresh potatoes. Besides Ipers would like, but overall, there is a weekend with a promotion on reds out of fresh market potatoes, the valley offers the confidence among the trade in this Minnesota, which are grown in the Big Lake country’s largest non-irrigated chip- North Dakota/Minnesota production region and Long Prairie areas. The price: 25 cents per producing area, plus has sizeable crops of a near-normal crop is providing quality red pound! The Minnesota red potatoes are typi- spuds for seed and processing. potatoes. This is leading to some attractive cally available a few weeks ahead of Red River Paul Dolan is the manager of Associated retail promotions, some of which are occur- Valley potatoes, although valley shippers Potato Growers Inc., based in Grand Forks, ring early in the season. market some of those reds. However, Caputo ND. The cooperative is one of the largest ship- Vito Caputo is the owner of Palatine, IL- is already looking forward to promoting red pers of fresh potatoes from the valley. Dolan

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with russets, and the remainder is with other NEW LOGO FOR RED RIVER VALLEY varieties of potatoes,”Hogan states, as he notes etailers will have access to a new logo available the pride area residents take in supporting to the 13 fresh potato shippers in the Red River their locally grown products. RValley this season, according to Ted Kreis, “Absolutely,”is the firm response by Steve Side Note marketing and communications director for the Tweten when asked if there will be promo- Northern Plains Potato Growers Association, located tional opportunities for valley potatoes with in East Grand Forks, MN. He credits NPPGA chairman, retailers. The president and CEO of NoKota Carl Hoverson, with the idea for updating the logo to Packers Inc., of Buxton, ND, agrees there are provide a more unified brand identity for Red River more retailers taking smaller sized packages. Valley potatoes. With the region’s red potato shippers He also notes a trend toward more potato using their own little known brands, potatoes were lacking packs designed for easy preparation in a an identity. As a result of ideas shared between the association’s microwave. “We are involved with steamable Advertising and Promotions Committee, Valley Bag & Supply Co. of East Grand Forks, potatoes through Fresh Solutions Network, MN, as well as a Minneapolis marketing firm and valley wash plant operators, a new LLC, a Loveland, OH-based company with brand or logo was created. which Nokota is partnering to offer its The artwork depicts two separate potato fields, one in North Dakota and the other customers a “complete potato category in Minnesota, with the Red River (the boundary for the two states) in between. The assortment.”Continuing, Tweten says,“There dark dirt between potato rows represents the rich black loam soil found in the unique, seems to be more microwavable packages huge glacial lake of the valley. The phrase “Nature’s Flavor” is part of the logo used available, even an 18- or 24-oz. pack. The to relate the message valley red spuds are grown without irrigation, using natural rain- packs are designed to provide for one meal, so fall, which packs more flavor. pb tomorrow, consumers will return to the store to buy a different one,”he notes. continues to see a trend among retail buyers Hogan, who manages the 9-store Grand Forks, Randy Boushey, president of A&L Potato wanting their own private label. During a ND-based produce departments, offers its Co. of East Grand Forks, MN, says there seems recent visit by PRODUCE BUSINESS to a Hugo’s Hugo’s label on red potatoes in 10-lb., clear to be more “action” from retailers than ever supermarket in Grand Forks, ND, private poly bags. “Ninety percent of our potato sales before in regards to consumer packs. Part of labeled red potatoes were on display. Rick are with red potatoes, while eight percent are the reason, he surmises, is retailers who deal

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directly with shippers get a better price on itself from the competition and being used as potatoes, rather than going through a conven- a marketing device. tional repacker,“where the price is marked up.” Boushey at A&L Potato is noticing some He sees this contributing to heavier demand lower pricing on potatoes, which he believes for consumer packs, especially in the 5-lb. bags. will drive up movement and sales. “With the At J.G. Hall and Sons of Hoople, ND, prin- summer heat gone and the kids being back in cipal Greg Hall notes his growing/shipping school, I think people are getting back into the operation did more business last season with cooking mode,” Boushey says. “I am looking repackers, but is looking to increase partner- forward to a heavy demand for potatoes ships with retailers this season. because of the lower retail prices.” Another grower/shipper doing a lot of busi- More attractive pricing at retail is being ness with repackers and wholesalers is Crystal, driven by “market pressure,” Boushey adds. ND-based O.C. Schulz & Sons Inc. President “Potatoes are costing retailers less to buy and Dave Moquist sees more orders for potatoes it is bringing down prices. Some stores are being consolidated because retailers are consol- running some aggressive ads. We’ve had some idating their buying operations. “Some really good ads in the past three weeks from retailers who had regional buyers have central- retailers that have offered some good promo- ized their buying operations, so they are tional prices.” buying everything from one place and setting At O.C. Schulz, Moquist sees it a little differ- up long-term buying plans,”he explains. ently. He believes, as a grower/shipper, it is While this is true with some retail opera- more difficult to have an effect on the market. tions, Caputo of Joe Caputo & Sons IGA relies “If we have a large crop, it seems harder to get heavily on Chicago-area wholesalers for his a retailer to lower the retail price to move the produce, including potatoes. The formula is volume,” he remarks. “[Retailers] are inde- working, as the small chain has a store in Des pendent, just like farmers are independent. It is Plains, IL, another in Palentine, IL, and its latest harder to communicate what needs to be done, supermarket is in Algonquin, IL. “We started at least from our point of view.” with a 10,000 square-foot store, then came a 60,000-square-foot and now we have the Red Potato Retail Promotions 75,000-square-foot store in Algonquin,” Despite an unusually hot growing season Caputo notes. “Fruits and vegetables are our and less rain than many growers prefer,the Red main focus, although we do have grocery, deli, River Valley potato trade overall sees a near- fresh meats, bakery, wine and beer.” normal volume crop, with retail promotions in He sources most of his potatoes from City place. Opinions may vary whether the valley Wide Produce Distributors Inc., Anthony fresh potato crop will be a little above or below Marano Co. and Strube Celery & Vegetable average. Much of this thinking is due to some Co., all headquartered in Chicago, IL. Caputo’s areas and fields in the valley receiving adequate most popular potato pack is the 10-lb. bag of rainfall, while other areas are not as fortunate. Idaho potatoes, although the small chain also Dolan at Associated Potato notes some does well with 5-lb. packs of red and Yukon timely rains will help the sizing on red pota- potatoes. The company also offers a 70-count toes. Some areas are needing more rain to spud in bulk displays.“The red-skinned pota- make digging of the crop easier, which result toes are a good summertime fit in potato in less skin-scarring of the product. salads,” says Caputo. “The red potatoes work Hall at J.G. Hall reports his own crop is fairly well for us versus the white potatoes.” down five to eight percent this season, and he Potato sales at Caputo are pretty well believes the valley as a whole will produce a balanced between the packaged product and normal sized red potato crop “at best, if not the bulk displays. The retailer says it is part of below normal.” providing customers with the convenience of Mike Rernick, vice president of sales and both types of offerings. marketing at NoKota Packers, says he is letting Hugo’s Hogan offers a unique packaging of customers know some of their growers started red potatoes from the Red River Valley in a 5- harvest right after Labor Day, about two weeks lb. brown paper sack with a handle, which later than normal, due to dry soil. But some makes for an attractive display of the product significant rainfall improved the situation for on the retail shelf. It is affordably priced at 98 harvesting, plus cooler weather is arriving. “I cents per pound. see the yields being average to a little above At Associated Potato Growers, Dolan is average,”he remarks. “That is surprising since seeing more retail interest in 4-, 5- and 8-lb. we didn’t get a lot of rain this summer.” packages of potatoes. He believes part of it is Tweten at NoKota points out some growers one retail operation looking to distinguish further north in the valley have received more

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UNITED POTATO rains than growers further south in the valley. year. Spokely has dryer soil conditions than “We are hoping for overall average tonnage,” many other growers in the valley and believes GROWERS OF AMERICA Tweten says. his production will be down about 20 percent. n 2004, the United Potato Growers of “We are already getting promotions in “I would be surprised if the valley as a whole America was formed as a cooperative October, and some retailers are looking at has a normal crop this year because it has been Side Note Iunder provisions of the Capper- November,” states Tweten at press time in hotter and dryer than normal. Some fields have Volstead Act of 1922. The Idaho Falls, September. had more rain than others in the valley, espe- ID-based organization is formed to Lonnie Spokely of Spokely Farms of cially the fields up north,”Spokely relates. combat depressed potato markets in Nielsville, MN, has had several years of good, Moquist at O.C. Schulz is one of the North America. It has a goal of if not nearly perfect growing conditions, while growers in the northern end of the Red River addressing over-production problems, other parts of the valley did not fare as well. Valley. His earlier red potatoes could have used which many in the potato industry Unfortunately,the tables have turned a bit this more rain, but later planted crops fare better believe is created by the Idaho potato growers themselves. In 2008, the Red River Valley became the 10th potato region to join the United cooperative. How has the United co-op performed in the opinion of the Red River Valley potato trade? Opinions vary. Paul Dolan, manager of Associated Potato Growers Inc., based in Grand Forks, ND, says the cooperative is “still very much functioning,” but may not be as outspoken as it was at one time, refer- ring to an anti-trust lawsuit filed in 2010 by a New York wholesaler. The co-op denies any wrongdoing, stating it operates legally under Capper-Volstead. At O.C. Schulz & Sons Inc. of Crystal, ND, president Dave Moquist contends, “Since its inception, the cooperative has done a terrific job of informing the growers as to supply and demand and basically charting how our suppliers fit into the market at different times.” He describes the organization as an “invalu- able tool” for the trade. While United is not a “catch-all” for everything, it has done a good job, he adds. Randy Boushey, president of East Grand Forks, MN-based A&L Potato Co., however, is not as enthusiastic. He knows one valley grower who stopped attending UPGA meetings altogether, “because he didn’t think they were effective.” As for Boushey, he questions whether United really accomplishes anything, but then adds the dialogue between the growers from different competing regions “may cut down on the lying” about production, quality and other issues. However, Boushey does not see the work of UPGA translating into increased potato markets. “It seems to have very little effect in reducing acres planted,” he states, noting there has been overpro- duction industry-wide both last season and this season. pb

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WHAT’S NEW IN THE RED RIVER VALLEY? &L POTATO CO.: The potato shipper wash plant in Missouri. Black Gold also optimistic about 2013. adds to its storage and now has grows potatoes in Georgia, North Carolina, NOKOTA PACKERS INC.: The shipper A300,000 cwt. of potato storage. It Florida and Texas, which are shipped to announced in August it is joining forces Side Note also adds two sizing machines to increase the Missouri operation for washing. The with Fresh Solutions Network LLC of Love- its packing capabilities. company is over 80 years old, but initially land, OH, to drive profitable category ASSOCIATED POTATO GROWERS: The entered the fresh potato deal in 2008. growth through innovative market, cate- cooperative adds 60,000 cwt. of storage KERIAN MACHINES INC.: The Grafton, gory management and operational for this season, pushing its total storage ND-based company developed a new roller solutions. NoKota president and CEO, capabilities to a Red River Valley-leading for a sizer machine for the Granex variety Steve Tweten, says, “Now, in addition to 1.25 million cwt. of sweet onions. Perhaps the best known providing our customers with high-quality BLACK GOLD POTATO SALES INC.: Last of the flat shaped onion is the Vidalia red potatoes from the Red River Valley, year was the company’s first season to onion. Company president, James Kerian, growers dedicated to our packing and grow fresh potatoes in the Red River Valley says the company is planning to test the sales operations can offer a complete with 150 acres. This season, between the new rollers in the field before placing it on potato category assortment that will company and one other grower, it will the market. On an economic note, Kerian satisfy shoppers on a year-round basis.” have 900 acres of potatoes in the valley. relates the firm’s domestic business, which O.C. SCHULZ & SONS: The grower/shipper Unlike other valley operations, Black Gold suffered 2008-09, has “really come back.” adds 85,000 cwt of storage in a new building does not have a wash plant in the valley. Its export business to Europe, South that is 90 x 200 feet, and includes a work Instead, it ships its red potatoes to its America and Asia remains strong and he is area. pb

with moisture, which is good for his late an average crop at best.” crop will be “no bin buster, but we are confi- storage potatoes. “Some fields that caught Keith Groven, a sales associate with Black dent we have a quality crop.”However, he sees some rain at the right time will probably be Gold Potato Sales Inc., headquartered in yields being down with a shorter crop above average,”he says.“But I guess we’ll have Grand Forks, ND, agrees the valley’s potato compared to a year ago. pb

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Growers Predict A Solid Season For San Luis Valley Potatoes Good crop quality and increasing acreage result in good volume to meet buyer needs. BY SANDY LINDBLAD LEE

s harvest and distribution gains Harvest began ahead of normal because of in organic, fresh potato production. momentum throughout the San the heat, with some growers starting up to two Although about 85 percent of the San Luis Luis Valley potato production weeks ahead of schedule in August. The Valley spud volume is in Russet varieties, A region in southwest Colorado, ongoing, unusually hot weather had put more Ehrlich stresses that Colorado can grow any growers and shippers are pressure on available water supplies.“Water is a kind of potato that buyers and consumers predicting that demand will continue to huge issue here,”Ehrlich stresses.“Wehave only desire. Purple potatoes, pink-skinned varieties, improve through the fall and winter months. about 50 percent of our normal snow pack.We and unusually shaped potatoes are gaining the With a slight increase in planted acreage and a have a diminishing aquifer, and all of the attention of consumers, from executive chefs crop quality that has been described as one of increasing costs to irrigate are causing addi- and foodies to the creative home cooks who are the best in recent years,buyers can look forward tional pressures on the growers.” seeking new, imaginative ideas for their fami- to ample supplies of good quality potatoes Colorado ranks as the second largest fresh lies or for entertaining guests. throughout the 2012/2013 shipping season. potato-producing state in the United States. “And Fingerlings are capturing more atten- According to Jim Ehrlich, executive director Ehrlich points out that it is also the No. 2 state tion as well,” he adds. These elongated, thin of the Monte Vista-based Colorado Potato shape and assorted colors of Fingerlings are Administrative Committee (CPAC), planted now being offered by a few San LuisValley ship- potato acreage in the San Luis Valley is at pers in a mixed variety consumer pack. “Since 55,100, up from about 54,000 in 2011. This the USDA has changed its standards, allowing figure reflects the first increase in several years mixed varieties to be packed together, this in a region that had been showing an ongoing creates a lot of opportunities for shippers and acreage decline from a peak of 72,000-planted more options for buyers,”Ehrlich explains. acres in 2002. Ehrlich points out a lot of heat in June, some spotty hail that damaged a few Naturally ‘Green’ And fields, and a water shortage may reduce overall Attractive Freight Advantage supplies, but overall conditions were favorable The magnificent, snow-covered peaks of the for a good crop with consistent volume. Rocky Mountains surround the fertile San Luis

Above: Roger Christensen, Angela Diera and Rob Bache of Skyline Potato Co. Below: Matt Glowczeski and David Tonso, Canon Potato Co.; Randy Bache, Skyline Potato Co.; Michele Peterson, Ryan Haynie and Jed Ellithorpe, Aspen Produce LLC.

OCTOBER 2012 •PRODUCEBUSINESS 67 San Luis Valley.qxd:Layout 1 9/25/12 5:54 PM Page 2 ieNote Side WHAT’S NEW IN THE VALLEY? spen Produce LLC, Center, CO: Lynn and Jeffery McCullough, the father- “We’re implementing some new and-son team who own Lynn McCullough A technology that puts us more in Farms LLC, Spud Grower Farms LLC, and touch with the consumer,” reports the Spud Seller LLC. Based in Bancroft, salesman Jed Ellithorpe. Consumers will WI, RPE will serve as the exclusive be able to use their Smart Phones to marketer for Spud Grower Farms, the scan the bar code that Aspen Produce growing operations, and the Spud Seller, has added to the company packaging the packing and shipping company. which, when downloaded, will show A $4 million expansion to the grading some general information about Aspen line at Spud Seller was completed, making Produce. “It will help us gather more it “one of the more modern potato-pack- analytical data about the consumers, and aging facilities in the San Luis Valley,” it is also designed to bring more according to Lynn McCullough. Spud Seller consumer awareness to the farming offers its customers cartons and consumer- aspect of our business.” sized packs in all sizes, packs, and ranges. Canon Potato Co., Center, CO: President The facility is third-party certified by Scien- and CEO, David Tonso, remains active in tific Certification Systems. the Colorado Potato Administrative The Spud Grower farming operations Committee as the chairman of the grows Russet Norkotahs, Canelas, and Rio marketing committee. Grandes totaling just over 1,500 acres. The Back at the Canon Potato facilities, Tonso partnership will provide RPE with more reports, “With a special focus on food safety than 2 million 50-lb. units of potatoes to and sanitation, we’ve made key upgrades in market from Spud Grower Farms and other our warehouse. Now we are perfectly posi- Colorado-based growers. tioned to answer the constantly evolving Skyline Potato Co., Center, CO: The needs of the potato industry.” company has completed expansions at two Farm Fresh Direct LLC, Monte Vista, CO: of its packing facilities in the San Luis Valley, The grower-owned sales and marketing according to chief operations officer and organization rolled out four new general manager Randy Bache. The addition microwaveable potato products in the at the Horizon packinghouse, located a few spring as a part of its Jubileez line. Dave miles south of the headquarters, expands Yeager, vice president of sales and busi- the building’s size over 30 percent. New ness development, reports that Farm Fresh loading docks were also completed. has added yellow, white, and red creamers At Skyline’s organic potato packing as well as small sweet potatoes to the line. facility, Purely Organics, a 5,200-square-foot These microwavable products comple- addition was completed for processing busi- ment the full-sized Russets and sweet ness, product storage and shipping. A third potatoes that have been marketed since loading dock was also constructed. 2003, sold under the “Express-bake Skyline Potato operates a total of three PotatOH!” label. Microwavable PotatOH! sheds “to fully meet our customers’ needs Fingerlings were the first in the Jubileez for one-stop shopping,” notes Roger Chris- line and were introduced last year. The tensen, general manager of sales. Additional Jubileez products are packaged in 14-oz. convenience is also offered through Skyline’s trays and are washed and ready to put in sister trucking company, P.S. Connections. the microwave. Yeager emphasizes that Skyline expects to ship about 2 million cwt. the tray is organic and compostable, and from Colorado this season. Including all the film is BPA-free. products available through the different Spud Seller LLC, Monte Vista, CO: RPE businesses, the organization predicts it will Inc. has entered into a partnership with ship over 3.4 million cwt. of product. pb

Valley and provide a picture-perfect setting for Variety in sizes, colors and shapes of pota- growing potatoes. Its natural environment also toes are not the only attractive characteristics allows a minimal use of pesticides because of its of potatoes shipped from the San Luis Valley locationandclimate.“Itishere,at7,600feetabove that draw new buyers. This region is a natural sea level — the highest and largest alpine valley in fit for the multitudes that are going green.“We the world where commercial crops are grown — are more sustainable than any growing area,” where the potatoes thrive,”Ehrlich notes. stresses CPAC’s Ehrlich. “Buying Colorado

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potatoes equals less food miles with our natural the best fresh produce values for consumers.This Thecompany marketsaportionof itsorganic freight advantage, and we have less pesticide even applies to organic potatoes,which some still volume through Food Source Inc., in Monterey, need and fewer disease problems because of perceive to carry higher prices. “We are a full- CA, using the Tomorrow’s Organic label.“At the winter kill.Weare justifiably proud of our state servicepotatocompany,withayear-roundsupply same time,we sell our own Nature Fresh organic and of our unique region.” of potatoes, both conventional and organic.”The label, which are available in the 3-, 5-, and 50-lb. With its high elevation and low tempera- company holdings also include Purely Organic,a containers through Skyline,”Christensen adds. tures, winter freezing helps naturally sterilize separate packing facility, for its organic volume. “We will also pack private labels for organics as the ground,reducing pest and disease pressures, “We’ve got an organic program that has taken 19 well as conventional potatoes.” Ehrlich explains. Cool weather also contributes years to develop,”he emphasizes. Because of the “Potatoes are a good food source during to a smoother-skinned potato. varying popularity of organics,“a lot of handlers tough economic times,” touts Jim Knutzon, Adding to the potatoes’ allure is the Valley’s jump in,and then jump right back out,but we’ve CEO of Monte Vista, CO-based Farm Fresh centralized location, which provides a natural had a consistent supply for our customers.” Direct LLC. Historically,“there is a direct corre- freight advantage and is becoming even more appealing as the popularity of buying locally grown skyrockets. “While retailers continue to strive to be more green, Colorado’s freight advantage is always in our favor,”Ehrlich adds. Pam Dunning, potato buyer at Growers Exchange Co. Inc., in Dallas, TX, concurs, adding, “Colorado potatoes can be delivered to our customers in one or two days, which reduces shrink and makes them fresher.” She adds that one-stop potato shopping available through a single growing region can be another way to save on freight costs. “Delivery can sometimes even be done overnight,”Dunning continues, describing the 800-mile trip from the San Luis Valley to some Dallas-Fort Worth delivery points. “The industry is realizing,with freight being what it is, that sales and distribution will become more regional,” stresses Center, CO- based Aspen Produce’s Dwayne Weyers, a company principal.“It’s a changing world, and we have to change with it.” And as consumers continue to tighten their belts facing a questionable economic future, “they will be turning more to potatoes as a nutritional and versatile way to feed their families for pennies on the dollar,”adds Weyers. This winter, potatoes are predicted to offer even more value, with consumer-attractive prices as a result of plenty of potato volume nationwide.“The 15-lb. jumbo potato bag and other larger bag options might be more popular this year,”because they may offer an even more attractive price, predicts Randy Bache, chief operations offficer and general manager of Center, CO-based Skyline Potato Co.

Economically A Perfect Fit David Tonso, president and CEO of Canon Potato Co., headquartered in Center, CO, stresses, “In times like these, when people are getting back to simplicity,there’s nothing more basic than the value, nutrition and great taste of Colorado potatoes.” Skyline Potato’s general manager of sales, Roger Christensen, says potatoes remain among

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CPAC ACTVITIES ith its ongoing aim to empha- size the nutritional value of Wpotatoes, the Monte Vista-based Side Note Colorado Potato Administrative Committee (CPAC) will continue to utilize the talents of Olympic figure skater Rachael Flatt to help reach consumers in Colorado and throughout the country. According to CPAC Administrator Linda Weyers, Flatt will continue to represent the committee at several events throughout the 2012-13 shipping season. “She’s a great CPAC’s Elaine Ford, Jim Ehrlich and Linda Weyers spokesperson for us and a great role model for kids, who we are also trying to on September 8, when CPAC coordinated reach with the message of the health its annual Potato Festival in Monte Vista. value of potatoes,” she emphasizes. The festival featured cooking demonstra- In a partnership with CPAC since 2010, tions, field and warehouse tours, a Flatt has been involved in numerous live potato-decorating contest, kids’ games, and multi-media events as a committee and other activities. spokesperson. Yet another appearance The committee is also involved in a from Flatt will come as a part of the K-12 curriculum program that is available Produce Marketing Association’s Fresh to teachers throughout the state of Summit in Anaheim in late October. “She Colorado with local teacher and will be at our booth for one of the days of curriculum developer, Judy Lopez, who the trade show, which will be a great draw adapts the studies for each level. All for attendees,” Weyers predicts. The San ages engage in field trips to learn more Luis Valley potato booth will be a part of about potato farming, storage, shipping the Colorado Pavilion at the Fresh and marketing. Summit. The committee has its own booth The committee is also working with the space, as well as independent shipper U.S. Potato Board on the school lunch representation from the San Luis Valley. challenge and how to educate consumers In other activities, the spotlight on about including potatoes as a regular part Colorado potatoes was especially bright of their diets. pb

lation of announced recessions and more at- Variety In Displays Increases Sales home eating of potatoes.And when food prices Virginia Myers, office manager of Moun- are high — and they are predicted to continue tain Valley Produce, emphasizes that the to increase — potatoes are perceived as an even variety offered through her company better value.” provides added benefits to retailers. The Ernie Myers, general manager of Mountain company is in its third year of offering its Valley Produce LLC, in Center, CO, agrees. customers a year-round Fingerling program “Consumers need to be reminded that potatoes in addition to its to Russet, red, and yellow are still one of the greatest values in the produce options, and she says that can add up to department, and they need more education increased profits for retailers. “The U.S. relating to their versatility.” Potato Board research has shown that Multiply that value with the added bonus of providing a variety of options in produce being good for the environment.“People want displays in supermarkets helps them generate to support locally grown to help cut fuel usage growth in the entire potato category,” she and cut costs,” Skyline’s Christensen notes. notes. “Fingerlings are a convenience potato “That’s good for all of us.” product as well. They have shorter cooking According to Ray Keegan, manager of time and are so versatile.” American Produce Co. LLC, a Denver, CO- Consistency of quality is also key to help based receiver that services retail and increase in-store sales, stresses Christensen. foodservice accounts, “Colorado potatoes are “We probably have one of the best source fresher; they have more flavor and variety; and buyers in the area. We also have been using they are convenient and economical. They are the same basic group of growers, which leads the best answer for my customers.” to more consistency.” pb

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OCTOBER 2012 •PRODUCEBUSINESS 71 Florida Fall.qxd:Layout 1 9/27/12 10:44 AM Page 1

Tomatoes and citrus are two of the many Florida-grown items that the state supplies through the winter. Florida Fall Produce Shines

Florida produce adds color, flavor and nutrition to fall menus. BY BARBARA ROBISON

all brings a profusion of colorful, should have ample supplies of fall produce for Retailers Support Fresh flavor-rich, nutritious fresh fruits and the markets. We expect a three to five percent Produce Campaigns vegetables from Florida. In 2011, the increase in costs, primarily due to drought Retail support of any fresh produce Fstate was ranked first in the value of conditions in the Midwest. Fertilizer and fuel campaign is critical, and the Florida produce production of fresh market snap costs are among those items with heavier industry is fortunate that so many retailers have beans, cucumbers for fresh market, bell increases. It will be up to consumers to decide been supportive. “Once the Florida season peppers, squash, sweet corn, fresh market whether they want to purchase produce that starts, we promote Florida-grown products in tomatoes and watermelons. The value of the has been grown in the United States or from our weekly ads every week,”states Maria Brous, Florida vegetable crops exceeded $1.5 billion, other areas, which do not have the protections director of media and community relations for and the state ranks second to California in the we have in this country.” Publix Super Markets Inc., in Lakeland, FL.“At total value of fresh vegetable market produc- According to Jason Bedsole, eastern Publix, we have supported local agriculture for tion. The state also produces sizable amounts region vegetables sales manager of Duda decades. In addition to weekly ads, we feature of strawberries, blueberries, as well as oranges, Farm Fresh Foods Inc., headquartered in Florida produce in our variety merchandising grapefruit and tangerines for the fresh market. Oviedo, FL.“The vegetable crops look good program. Florida-grown products are promi- Cabbage, eggplant, sweet potatoes, potatoes, and plantings will ramp up in the coming nently displayed in the produce departments, broccoli, chili peppers, avocados and other weeks. We continue to increase our leafy often in what we refer to as ‘first’ position.” tropical fruits add to the diversity of Florida- green item mix to help customers reduce the “We partner with the Florida Department grown produce. number of stops their trucks have to make. of Agriculture [FDACS] to participate in state With plantings underway for the upcoming With new DOT (Department of Transporta- initiatives that focus on locally grown products, Florida produce season, there was much tion) regulations, we need to help streamline including the Fresh From Florida campaign,” concern over the late August Tropical Storm the loading process so customers can capi- shares Benny L. Smith, spokesman for Harveys, Isaac and what damage has occurred.“It was a talize on freight advantages. Organic celery a Salisbury,NC-based 73-store chain affiliate of big rainmaker in certain spots and they’re still plantings have increased due to customer Delhaize America. getting rain in southeast Florida,” comments demand,and we look to expand our organic “We are seeing a shift among consumers Mike Stuart, president of the Maitland-based offerings in the future.” toward locally produced items, including Florida Fruit and Vegetable Association The company will have celery available from natural and organic products,” continues (FFVA).“The eastern part of the state seemed to December through May and radishes October Smith. “Harveys supports the purchase of get more rain than the west.” through May.Approaching the holidays, social products made in the states in which we However, Mike Aerts, FFVA’s director of media will become a source of holiday plan- operate, including Florida. We look forward to marketing and membership, warns, “There ning, with recipes and photos incorporating continuing our partnership with the [FDACS] may be some delays in harvesting, but Florida Duda’s produce offerings. to offer fresh produce in season and grow our

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FRESH FROM FLORIDA CAMPAIGN “In addition to weekly GROWS IN IMPORTANCE ads, we feature Florida

an Sleep, supervisor/senior analyst timing. Sampling programs, advertising produce in our variety Side Note of the marketing and development and use of social media have all been merchandising Ddivision of the Tallahassee-based components of our programs. We are Florida Department of Agriculture & continually looking for new opportunities, program. Florida- Consumer Services (FDACS), asserts, both here and abroad, to promote the grown products are “Fresh From Florida is our campaign high quality, freshness and good pricing slogan or brand. It works well in Florida of Florida’s produce. It helps our growers prominently displayed and neighboring areas for locally or and others in the industry and can trans- in the produce regionally grown campaigns. It works well late into new jobs, an important factor in in telling consumers throughout the today’s economy.” departments, often in United States and countries around the The FDACS also reaches out to chil- what we refer to as world about Florida’s quality produce. Our dren and parents with programs to campaign’s goal is to increase sales and encourage healthy eating habits by using ‘first’ position.” awareness of the fresh commodities more fresh fruits and vegetables. One is — Maria Brous, Publix Super Markets Inc. produced in Florida.” designed to help fight against childhood Our neighbors to the north are an obesity and other diet-related health beans and other fresh vegetables. Corn is a big important audience in the campaign. problems. Fresh2U suggests young item in the spring. The Fresh From Florida Sleep adds, “Canada is a huge market for people eat at least five servings of fruits logo materials are used in our displays. The us. Nearly one-quarter of all the and vegetables every day. It encourages customers like the idea they are purchasing campaign ads appear in Canada. Last children to try at least 20 different Florida produce from Florida.” year, our campaign reached 52 retail fruits and vegetables at home during the chains in 22 countries with 14,000 stores. school year. The program can also be Fresh Tomatoes A Major Florida Crop This year, we will launch a campaign in used in the classroom. Two Florida Fresh tomatoes are an important Florida November, running through January. A produce items are featured each month, fall crop,with new plantings starting in August. second campaign will run from February with a mini-poster available. DiMare Fresh, headquartered in Tampa, FL, to early May.” Another program, Fresh From Florida produces a variety of fresh tomatoes,including The Florida Agricultural Promotional Kids, helps parents instill healthy eating round, Roma, cherry and grape. “We always Campaign (FAPC) allows both small and habits in their young children. Research participate in promotional programs with our large producers an opportunity to be a suggests that taste preferences and eating customers at various times of the year, but the part of the Fresh From Florida programs, habits are fully developed by the time a promotions are customized to suit the indi- conducted by the FDACS. The program child is three-years-old. This program is vidual retailer,” remarks vice president Tony centers on the Fresh from Florida logo, divided into three phases corresponding DiMare. “Some will be scripted by the indi- which is displayed on product packaging, to the child’s age. Recipes are provided vidual customer and some will be in signage and a variety of print and elec- for each phase and “The Practical Mom” conjunction with the FDACS and the Florida tronic media. weekly tips are also available. Tomato Committee.” “Retail promotions are an important Targeting adults, the FDACS presents “The recent high winds and rain we expe- aspect of the Florida program, and we’ve an Easy as 1-2-3 Plan to help instill better rienced in late August have been fairly typical been fortunate to have fine cooperation eating habits, to help fight obesity, for us,” says Samantha Winters, director of from many retailers, among them Publix, diabetes, high blood pressure and other education and promotion for the Maitland- Bravo, Sedano’s, Harveys, and Sobeys chronic diseases. The plan suggests based Florida Tomato Committee (FTC). and Metro in Canada,” reveals Sleep. eating one or more fresh vegetables with “However, we don’t anticipate any serious “We’ve had large displays of a diversity two meals a day for three months. Easy- interruption as a result.” of products, depending on the seasonal to-prepare recipes are also provided. pb The Committee’s marketing program will focus on moving Florida round field-grown tomatoes. Efforts will focus east of the Missis- prospective local suppliers.” Sobeys Ontario, a 102-chain Milton, Ontario- sippi River to make the most of the available “Above supporting Fresh From Florida,we based division of Sobeys Inc. He says,“Weneed marketing dollars. Promotional activities are also know that local produce has a positive to look to all growing regions for seasonal usually concentrated in the spring, but Florida- impact on creating jobs and producing supplies to remain sustainable the entire year. branded point-of-sale (POS) materials will be revenue in communities,” remarks Smith. That’s why we depend on Florida for supplies as available to retailers during the fall season. “We like to promote our local growers in soon as their produce is available and meets our “The FTC recently sponsored a Florida advertisements and in store signage.” standards. The state’s citrus is huge for us, espe- tomato cooking and in-the-field segment with Canadian retail support for Florida-grown cially grapefruit and tangerines. We also buy Florida chef, Justin Timineri, on the How to Do produce is important, according to Frank their juice oranges. Florida strawberries and Florida show,”reports Winters.“It is a regional Bondi, director of category management for blueberries are popular here and we carry green program and series running on the Sun Sports

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channel. Further, our television commercials, Growers Association (FSGA) always anticipates recipes for strawberries, using them in both speaking to the commitment of our growers to a good crop,with the primary variable being the local and regional restaurant chain promotions. produce a wholesome, flavorful tomato, will be weather.“This year’sacreage should remain close There are lots of spring and summer strawberry running in each program of the series in to last year’s, but perhaps a bit lower, reflecting promotions, but foodservice tends to overlook October through our spring season.” last year’sweak financial results,”says Ted Camp- them in the winter,” he continues. “The new The Committee is also launching a Kids bell, the association’s executive director. recipes will stimulate winter consumption. We Corner on its website for the fall.“We believe it Promotions generally begin in December will use our website, blog and outreach to food will provide good information for children, when the state has solid strawberry volume. editors and women’s magazines to deliver our parents and educators,”Winters adds. “Consumers are excited by creative recipes, and message to consumers. We have upgraded our chefs have become rock stars,” recognizes website and will promote the smaller family Strawberries A Florida Favorite Campbell.“Therefore, we have focused a lot of farms that produce the specialty crops. There The Plant City-based Florida Strawberry energy on our chef advisory panel to create new has been much negative publicity about‘factory farms’ so we’re putting a face on the small family farm.” Strawberries have nutritional and convenience benefits, and consumption continues to climb. Several strawberry handlers have promotions with local retailers, emphasizing the locally grown and fresh attributes of Florida berries. FSGA produces some of its own materials and also uses those from FDACS. Using its small budget, it has developed POS videos, and posters and video materials are all download- able from its website. Campbell remarks, “The scope of locally grown in winter changes significantly. Florida is the closest locally grown strawberry for Montreal in the winter,and we are the best local choice for half the country at that point.Weare faced with substantial market encroachment from Mexico so we will be heavily promoting Florida-grown, suggesting consumers look for the U.S. grown labels.”

Florida Known For Appealing Citrus Varieties The Bartow-based Florida Department of Citrus (FDOC) is an agency of the Florida government charged with the marketing, research and regulation of the Florida citrus industry. Karen Bennett Mathis, FDOC domestic public relations director, acknowledges,“The proposed FDOC operating budget for fiscal year 2011-2012 includes a smaller amount of funding for fresh citrus retail merchandising, compared to years past.Wecan provide retailers with several fresh POS materials at no charge, while supplies last.” The materials include display cards and two Florida Fresh bin posters. Brochures, with citrus product and nutrition information and recipes, and a Florida Citrus Varieties Produce Buyers’ Guide are also available. Florida boasts a number of different citrus varieties that extend all the way into the beginning of summer. Florida Ambersweet oranges are available from late September to October; Hamlin,Navel and Cara Cara oranges are in the market October to December; Fallglo and

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Robinson tangerines are marketed from tion. We also plan to participate in the FDOC vice president of sales.“Locally grown is a major September to November, while Sunburst grapefruit promotions.” part of our marketing strategy,plus we promote tangerines and Tangelos are available domestically grown to our partners across the November to January; red and white grapefruit Florida Nutritious Vegetables Promoted country. Many of our customers are provided are marketed October to June. Many Florida agricultural companies with bios of our family of growers to help “FDOC has a wide variety of Florida citrus produce and market a variety of fresh vegeta- promote locally grown Florida produce. All of recipes and images available on our website for bles. One of those companies is J & J Produce our promotional efforts and materials come retailers to use in their consumer communica- Inc., headquartered in Loxahatchee.“Once our from J & J’s internal marketing team.” tions programs,”adds Mathis. harvest schedule is completed, we will offer Weis-Buy Farms Inc., in Fort Myers, FL, Duda markets Florida citrus fruits as well as both retail and foodservice customers price markets tomatoes, strawberries and a variety of a variety of fresh vegetables. Sam Jones, eastern promotions to ensure consistent movement of vegetables. “We find that we can load trucks citrus division operations manager, reports, our core commodities,” remarks Kohl Brown, with items that complement each other in “The new 2012-2013 citrus crop is sizing well; with a uniform spring bloom, a consistent harvest pace is expected without gaps. The quality I see on the tree tells us there will be a balanced supply of fresh citrus for our programs and sales throughout the season. We are committed to the long term sustainability of the Florida citrus industry and thus, are expanding our new variety plantings and trials in southwest Florida.” Vero Beach, FL-based Seald-Sweet Interna- tional expects a more normal size structure on all varieties this year. “Last year, big sizes were prevalent,” remarks marketing manager Kim Flores. “Good volume on all varieties will help us promote the fruit with regularity.Wewill be touting Florida Navels as a specialty variety this year and will have a big push on bagged Navels.” The company customizes some of its own promotional materials, but also uses promotional items from both the FDACS and the FDOC. A QR code has been added to Seald- Sweet’s new packaging, that when scanned, the consumer can access information about the growers, products and growing operations. DNE World Fruit Sales, headquartered in Fort Pierce, FL, and its affiliates own and operate over 20,000 acres of citrus groves in Florida.“Weplan our promotions based on the peak flavor periods of each variety to meet consumers’desires for good tasting fruit,”states Kevin Swords, Florida sales manager. “Educating consumers on the different varieties by using effective POS materials and conducting in-store sampling to entice consumers to taste before purchasing helps boost sales and creates repeat buyers.” The company will promote Cara Cara Navels in 3-lb. bags from early November through December,and suggests jumbo Navels are an excellent item to promote during the holiday period. “In January, we will conduct a cross-promotion of Ocean Spray fresh grapefruit with Ocean Spray juices,”reveals Swords. “This has been a successful produce promotion for us in the past, as January is a good time to feature items that promote health and nutri-

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“Educating consumers on the different varieties by using effective POS materials and conducting in-store sampling to entice consumers to taste before purchasing helps boost sales and creates repeat buyers.” — Kevin Swords, DNE World Fruit Sales LLC

temperature and in lots as small as five pallets wild red cress, Bordeaux baby red spinach, and as much as 10 trailer loads,”notes president gourmet baby pea tendrils and wild baby and CEO Chuck Weisinger.“Wehave expanded arugula. The company works closely with our sales staff to give our customers a better both retail and foodservice customers on a handle on rapidly moving markets and changes customer-specific basis to maintain promo- that are inherent in the produce business. Our tions throughout the year. “We develop our company continues to promote fresh fruits and own programs and also work with FDACS vegetables each day in its advertising and by and its Florida-grown programs,”says Andy word of mouth.” Brown, vice president of marketing.“We are Strawberries, grape tomatoes and an array looking forward to a strong fall/winter of fresh vegetables are marketed by Bradenton, season with a new state-of-the-art FL-based C & D Fruit & Vegetable Co. Inc.“We processing facility for both our bunch and don’t really push locally grown promotions,but value-added products. This year, we began we do use some of the promotional materials working with The Culinary Institute’s Grey- from the FDACS,” shares president Tom stone Campus in California, which helped O’Brien. “We also develop some of our own sponsor a series of events attracting top materials through personal contacts with our chefs, restaurants, physicians, nutritionists retail customers.” and health writers to learn about the nutri- Raleigh, NC-based L&M Companies Inc. tional values of our baby leaves.” markets a large number of fresh Florida-grown vegetables. “Promotions to support retailers Tropical Fruits Add may vary with the retailer’s request,” states Diversity To Florida Crops Bobby Creel, business development director. Florida avocados are another produce item We produce our own POS materials, or some- available this fall through January. Homestead, times retailers will supply them. The locally or FL-based Brooks Tropicals LLC markets the regionally grown theme is emphasized when- Slimcado avocado, a range of avocado varieties ever possible.” with one-half the fat and one-third fewer calo- Daniel Whittles, director of marketing and ries than the leading California avocado. “We product development at Boca Raton, FL-based do a monthly newsletter called Cooking in the Rosemont Farms, a C.H. Robinson company, Tropics, with a medley of recipes, many of them shares, “We market a premium, blocky-style for our Slimcado,” comments Mary Ostlund, green pepper in a variety of pack types and director of marketing.“We recently conducted place cartons, bags and special offerings. Hot a sweepstakes promotion with Concord Foods peppers and mini-sweet peppers continue to and its guacamole mix package. Consumers be of growing interest to the trade. We also entered for a $500 cash prize and could sign up market a combination of pole cucumbers and to receive our newsletter and information from field cucumbers. Well-timed promotional Concord Foods. Over 10,000 entries were opportunities are offered to maximize the received for the contest, which just ended on impact of production peaks with lifts in September 30.” consumer sales. Some of the promotional Among the other Florida-grown tropical materials we use are our own, but we also use fruits marketed by Brooks Tropical and avail- some from the FDACS.” able this fall is the sweet, tangy star fruit, or Rosemont is planning to reveal some new carambola. Another marketer of Florida developments in the way of sustainable pack- avocados and carambola is New Limeco LLC, aging at the Produce Marketing Association located in Princeton, FL. Doria Potts, sales and meeting this fall. It also plans to offer a full line marketing director, notes, “The crops look in the dry vegetable category. strong and we plan to promote avocados this B & W Quality Growers Inc., headquar- fall. We will be working with a few select chain tered in Fellsmere, FL, grows a range of stores on promotions and ads, using our own distinctive baby leaves, including watercress, materials as well as some from the FDACS.”pb

78 PRODUCEBUSINESS• OCTOBER 2012 Berry Imports.qxd:Layout 1 9/26/12 5:54 PM Page 1

Argentina is an important up- and-comer in the imported blueberry industry. Imported Berries Help Maintain A Year-Round Supply Once the domestic berry supply has finished, retailers can rely on high quality imports to keep consumers very happy. BY CAROL M. BAREUTHER, RD

he arrival of fresh berries on super- Blueberries: Argentina, of September. During this time we also have market shelves was once a sure sign Uruguay, Chile And Mexico controlled-atmosphere blueberries from Oregon of summer. No longer. Imports of Fresh blueberries finish up in the Pacific into October so it’s a time of transition and Tblueberries, blackberries and rasp- Northwest and British Columbia by mid- to scheduling to meet the needs of our customers.” berries from Mexico, Central and late September. After that, explains Luciano Inez Pelaez, marketing director for Buenos South America during the fall, winter and early Fiszman, in South American procurement for Aires-based ProfrutalArgentina,a company that spring now mean any time is ripe for Los Angeles, CA-based Gourmet Trading Berry promotes Argentine fresh produce growers, customers to buy and enjoy berries. LLC, “Blueberries will arrive from Argentina says, “This year we are expecting almost the Year-round availability has grown berry cate- from September 15 through December 15; same volumes as the 2011/12 season starting gory contribution to 8.2 percent of produce from Uruguay from October 1 to December 1; around 38th week.” In 2011/2012, the United department sales in the 52 weeks ending June 30, and Chile from November 15 to March 30.” States imported nearly 21 million pounds of 2012, according to the Nielsen Perishables Not all these countries supply the United Southern Highbush blueberries fromArgentina, Group, a West Dundee, IL-based fresh food- States equally, however. Matt Curry, president according to USDA ERS statistics. consulting firm. What’s more, imports are far of Curry & Co., based in Brooks, OR, says, A mild winter meant that Argentina’s blue- from a token addition. Between 2007 and 2011, “The up-and-coming country is Argentina, berry crop is about two weeks early, with for example, fresh blueberry imports averaged which can help fill North American demand promotional volume expected starting mid- 46.7 percent of domestic fresh blueberry primarily in October. Chilean blueberries are October, rather than the beginning of consumption,according to USDA ERS statistics. by far the most imported blueberry into the November, advises Dr. Ulises Sabato, vice pres- Jeff Fairchild, director of produce at New United States, representing more than 60 ident of Weston, FL-based Fresh Results LLC, Seasons Market, a 10-store chain based in Port- percent of blueberry imports. Both Mexico and a large grower of blueberries in Argentina. land, OR, says,“Berries are healthy,convenient, and Uruguay have also increased blueberry “However, severe weather in the past and an consistent in quality and available all year long; tonnage, but Chile and Argentina clearly domi- inflationary economy skyrocketing the cost of that’s what driving sales.” nate the import blueberry market so far.” inputs, such as fertilizer and labor, have caused Here’s an update on the import season Argentina and Uruguay: The Argentina 300 to 400 blueberry growers to go bankrupt. ahead and how retailers can capitalize on berry import season into the United States is relatively As a result, there are now about 200 growers in sales during this non-traditional time. short, Curry details,“We’ll start toward the end the country down from 700, with six growers

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“Growers are identifying the best early and late Mexico, we hope to see timing back up into February, but we won’t know for sure until the season varieties as we see this as an opportunity bushes mature.” to fill domestic needs until domestic blueberries Family Tree Farms has bought the exclusive rights to grow and distribute in North start. The other trend we’re seeing is the America five uniquely sized, explosive continued investment in technology, in particular flavored blueberry varieties developed by an Australian breeder. “Our objective,” says cold chain technology, which improves the Goforth, “is to enable consumers to under- quality and shelf-life overall.” stand that there are multiple varieties of — Matt Curry, Curry & Co. blueberries, just as there are apples. We’ll be working on a marketing program in the controlling 80 percent of the production. future to convey this concept.” Hence, blueberry production is in a slower FIVE-YEAR IMPORT SHARE growth pattern than in the past.” OF DOMESTIC FRESH-USE Blackberries: Guatemala And Mexico According to Jim Roberts, vice president of BERRY CONSUMPTION Guatemala, and to a much larger extent sales for Naturipe Farms LLC, headquartered Fresh blueberries (percent): Mexico, are leading blackberry exporters to the in Estero, FL, two additional cost variables 2007 43.7 United States. challenging Argentina are the need to fly 2008 46.9 Guatemala: “We import blackberries from berries to the United States and the require- 2009 45.2 Mexico from September through May, along ment to cold treat or fumigate fruit.“Uruguay 2010 49.0 with other fruit from Guatemala,” explains is faced with the same challenges of logistics 2011 46.8 Reilly.“This year, the Guatemalan product has and phytosanitary demands,”he adds, “which played an important role in maintaining is why we don’t expect to see an increase from Fresh raspberries (percent): supply when weather affected Mexican and these two countries.” 2007 25.8 U.S. crops.” Chile: All imported berries have become an 2008 23.6 Mexico: Blackberries are available out of integral part of the produce program at 2009 18.8 Mexico from the end of September until mid- Marketplace IGA, a 32-store chain in Burnaby, 2010 29.0 July, says Fresh Result’s Crawford. British Columbia, Canada. Kent Disher, 2011 46.4 “Promotional volumes start at the end of director of produce operations for Marketplace October, peak in December and peak again in IGA and H.Y. Louie Co. Ltd., reports, “In the Fresh blackberries April,” he details, adding that blackberry past two years, Chilean blueberries in partic- Data not available separately from production and export out of Mexico has grouped blackberry, mulberry and ular have really gained in popularity at a time grown dramatically.“Ninety percent of what’s loganberry. when local berries are unavailable.” planted in Mexico is the Tupee variety, which Source: U.S. Department of Commerce The 2012/2013 season will see another has changed the face of blackberry consump- substantial step up in the volume of Chilean program manager at Gourmet Trading Co., in tion due to its consistent eating quality and blueberries shipped to the United States, Los Angeles, CA. shelf-life,” he reports. “As a result, I could see remarks Tom Tjerandsen, managing director Mexico: While the focus remains on the blackberries overtaking raspberries in sales for the Sonoma, CA-based Chilean Fresh Fruit traditional growing regions in the United States over the next few years.” Association (CFFA).“We expect this to exceed and Southern Hemisphere, Ben Reilly, Midwest According to Roberts, test plots in Mexico the 61,000-plus tons (122.7 million pounds) business development manager for Los Angeles, of new proprietary blackberries varieties imported last season, which makes Chile the CA-based Giumarra Companies adds, “We do should be available in the next couple of years. leading source of blueberry imports into have trial blueberry production in Mexico.” North America and the United States, now Eric Crawford, president of Fresh Results, Raspberries: Mexico surpassing Canada,”he details.“Added hectares remarks,“Mexico is the new frontier for blue- Sales of raspberries are slow from in production and replacing old varieties with berries, especially from the beginning of December to February at New Season’s Market, new high production ones are conspiring to December to June. This won’t affect Argentina, says Fairchild. “That’s due to the higher price increase imports.” but it could result in a huge effort for Chile.” over what customers are used to seeing for Curry & Co.’s Curry agrees that the Chilean “This past early March through the end of domestic raspberries,” he notes. “We tend to blueberry industry is continuing to grow. April was the first year of production for blue- carry them just for convenience.” “Reports suggest about a 50 percent produc- berries out of Mexico for Family Tree Farms, Naturipe Farms has planted its two newest tion increase over the next five years,”he cites. in Reedley, CA.“Our project in Mexico started proprietary raspberry varieties, Pacific Deluxe “The biggest development is the intent to five years ago with land and infrastructure and Pacific Royale, in California as well as a lengthen the season on both the front and back development,”explains Don Goforth, director smaller amount of acreage in Mexico. Roberts ends of the season. of marketing.“We planted the first variety two reveals, “This year marked the first commer- “This upcoming season, we expect a first years ago, and this year’s production was better cial production for us of these varieties out of peak for the Christmas pull and a second peak than anticipated. We expect to have four times Mexico. Availability is from October to prior to Valentine’s Day,” details Luciano the volume in 2013, enough for our retail part- December, and then there’s a gap, and available Fiszman, agronomy engineer and blueberry ners. As new varieties come into production in again from March to May or early June.”

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DO CUSTOMERS CARE WHERE production. Naturipe’s Roberts points out, “It THEIR BERRIES COME FROM? used to be only club stores that wanted large here are two sides to every story, and packs. Now, traditional retailers are stocking according to Matt Curry, president of up on 6-, 12- and 18-oz. blackberries and rasp- TCurry & Co., based in Brooks, OR, berries in pints and 18-oz., and even Side Note consumers care. “U.S. customers certainly experimenting with 24-oz. blueberries.” care where there produce comes from, and The success of larger packs may be counter- the continued emphasis of local first intuitive to some in a down economy, but not throughout the country drives sales nation- so in consumers’ minds. CFFA’s Tjerandsen wide. That being said, U.S. consumers also reports,“Research indicates that when retailers expect to find blueberries in produce depart- tested [larger packs], berry sales are inelastic, ments year-round, and when domestic and a higher unit cost isn’t a barrier to sales. In blueberries are out of season, imports fact, the customers lost to sticker shock are certainly fill that niche. Retailers should use more than offset by the sell-through of those this information to take advantage of the who purchase the larger packs.” seasonality of the domestic blueberry programs and when it’s time for imports, they Don’t Put Berries In A Winter Hideaway should announce that they have the most Berries are merchandised together front- consistent, highest quality import blueberries and-center year-round at King’s Super that are available.” Markets, a 25-store chain based in Parsippany, Dovey Plain, Reedley, CA-based Family Tree NJ. Paul Kneeland, vice president of produce Farm’s marketing coordinator, contends the and floral, adds, “The berry category is huge. answer is two-sided. “We ask this question It’s one of the top categories in produce.” to store produce managers and we get a wide The best berry displays are large ones at the range of answers,” he says. “In some cases, entrance to the store, or wherever there is the there are geographical areas where most foot traffic, recommends Julia Inestroza, consumers are more concerned. In other Gourmet Trading’s marketing and merchan- cases, it seems to vary from consumer to dising manager.“Berries are impulse purchases, consumer. But the continued year-round so exposure is a big component of sales.” growth in all berry categories seems to indi- Shelf space and visibility is important for cate that consumers want berries, regardless imported berries, agrees Curry & Co.’s Curry. of their origin.” “Domestically, consumers anticipate fresh Yet Paul Kneeland, vice president of blueberries and know it’s blueberry season,”he produce and floral at King’s Super Markets, a says. “For imports, you need to remind your 25-store chain in Parsippany, NJ, doesn’t think consumers that they are available.” consumers give the country of origin question Displays of imported berries are built in much thought. “Certain customers are cooler cases at New Seasons Market. Fairchild concerned with origin, but for the majority, explains, “They’ve already lost four to seven quality trumps where the berries were days or more in transit, so we find it important grown.” pb to keep them chilled to maintain quantity. Volumes of Chilean blueberries have grown Size Matters — Bigger Is Better so great that some retailers, such as Market- When It Comes To Packaging place IGA, will feature them in chain-wide Growth is exploding for larger sized display contests. “For the past two years, we clamshells of berries in the winter, says New have run a display contest with the stores in Seasons Market’s Fairchild. “Consumers are conjunction with a flyer ad on Chilean blue- looking for a value,” he says. “That’s what berries in January,” says Disher. “The stores makes 18-oz. blueberries and 12-oz. blackber- have come up with a variety of creative ways to ries and raspberries popular.” merchandise the blueberries that have helped The traditional 4.4-oz.pack hasn’t become a make this a very successful promotion at a time dinosaur yet. Curry contends, “The 4.4-oz. when our customers are looking for healthy clamshell is an important part of import blue- choices after the holiday indulgence.” berry programs, especially at the start and the end of the season when it allows for a more Berries Aren’t Just Warm Weather Fare attractive price point for consumers.During the Winter is a wonderful time to promote peak of the season you’ll have larger clamshell berries, recommends Giumarra’s Reilly. sizes to help move the necessary volume.” “Consumers are focused on staying healthy The percentage of larger packs is dramati- during cold and flu season, and many of them cally increasing at a faster rate than industry recognize berries as delicious super fruits with

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excellent nutritional benefits,” he points out. “Berries can also add warmth and color to displays, and their versatility makes them a good candidate for cross promotions.” Argentina’s blueberries are ripe for Thanks- giving promotions. Fresh Result’s Crawford emphasizes, “There’s a huge opportunity to bring in revenue during this time. Blueberries, while not traditional ingredients, can be used to make pies and even in place of cranberries in cranberry sauce.” Christmas and New Years are two great holidays during the peak volumes of imported blueberries, remarks Curry. “Blueberries can be a part of so many delicious dessert recipes like Blueberry cobblers and pies,”he says.“New Year’s kicks in the health benefits, and retailers should celebrate all the great healthy attributes of blueberries to help drive sales.” Charlie Eagle, vice president of business development for Pompano Beach, FL-headquartered Southern Specialties, says, “Blueberries are being used in festive holiday drinks like Mimosas.” Recipes are a focus of merchandising for import berry season at Kings, and Kneeland details,“Weseasonally create in-house five or six QR codes that lead to our website and recipes.”

Cool Promotions Imported berries are promoted as much as possible at Kings Super Markets, while at New Seasons Market, ads on 18-oz. Chilean blueberries are popular. Gourmet Trading’s Inestroza says,“The best way to promote imported berries is to plan large scale promotions during the peak production times. During the other weeks, back page promotions or in store promotions work well.” Value is a driving force for consumer spending, adds Naturipe’s Roberts.“Therefore, promotions that feature price and pack size are common,”he notes. Once again this season, the Chilean Blue- berry Committee will work closely with the CFFA in the United States to increase sales of Chile’s blueberries from November to April in coordination with winter promotions of the Folsom, CA-based U.S. Highbush Blueberry Council. The CFFA’s Tjerandsen, says, “In the spirit of cooperation and teamwork, the domestic blueberry marketing program has evolved to provide additional supplemental support when imports are in the market. This will fund in-store radio, POS materials such as cards and danglers and a recipe booklet that shows multiple ways to enjoy blueberries with a focus on winter.” pb

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California contributes 63 percent of the nation’s cirtus crops. California Citrus Provides A Solid Ring For Produce Department

California Navel oranges, along with Clementines and Mandarins are some of California’s most beloved fruit. BY JULIE COOK RAMIREZ

alifornia has long been the land of citrus industry,”says Kevin Fiori, vice president gravitate toward crops that make them a dreams, and many view the Golden of sales and marketing for Sunkist Growers, in decent return on investment,” he explains. State as paradise. This virtual Sherman Oaks, CA.“Citrus is a good value for “Right now, it’s all about easy-peelers.” CGarden of Eden is abundant with consumers and we’ve seen good demand.” The intense popularity of easy-peelers has almost everything, and certainly While Navels continue to dominate the led to a trade-off of sorts, as consumers shift citrus.While California production of citrus is California citrus industry, growers are seeing their purchases from Navels to Clementines nowhere near that of Florida — 33 percent of increased demand for Mandarins and Clemen- and Mandarins, according to Barney Evans, the nation’s citrus supply compared to 63 tines — the so-called “easy-peelers.” That vice president of sales for Sun Pacific percent — the state contributes a significant characteristic alone makes Mandarins and Marketing Cooperative, headquartered in Los portion. Clementines the natural choice for lunch boxes Angeles, CA.“Especially on the front end, prior Introduced to Californian soil in 1769, and snacking occasions, according to Fred to Christmas, we are seeing a decline in Navel citrus crops have flourished in its picture- Berry, director of marketing for Orange Cove, consumption based on the amount of perfect climate. In the 1840s, the state’s first CA-based Mulholland Citrus. “The fruit is Clementines and Mandarins that are now commercial citrus farm was founded in what is inherently more snackable because it is natu- becoming available from California,” he now downtown Los Angeles. And while it’s rally easy to peel,” he says. “It’s really a good reports.“That cannibalization — we are doing true that the state’s “citrus belt” has gradually product from a snacking, user-friendly stand- it to ourselves.” inched north into the San Joaquin Valley, due point. Consequently, consumers have picked Retailers agree that consumers have taken to the increasing urbanization of Southern up on this more and more.” to the easy-peel varieties. Maria Brous, director California, you won’t find West Coast citrus With Clementines enjoying a hearty of media and community relations for Publix growers mourning the migration. While “growth spurt,” growers are dedicating even Super Markets Inc., located in Lakeland, FL, Florida ranks first in the production of seeded more acreage to the variety, says Berry. The says Clementines now rank right alongside oranges, such as Valencias, which are used decision makes complete sense simply because Navels as the most popular oranges at the mostly for orange juice, California is tops when the hefty investment in water, land, taxes, and southeastern chain.“Clementines have become it comes to fresh market oranges, most notably labor required to produce a given crop forces a customer favorite,”she asserts.“They are easy the Navel orange. California citrus production growers to always be cognizant of where they to peel, seedless, juicy, sweet and great for reached $1.3 billion in 2011. can reap the greatest profit. “Naturally, if school lunch boxes.” “These are good times for the California growers are making money, they are going to Up the coast, in Parsippany, NJ, Paul Knee-

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hardy piece of fruit possesses a higher sugar content than traditional Navel oranges. At Kings, Kneeland reports a “huge uplift” in the more unusual citrus offerings, such as Blood oranges and Pink Navels. “Our customers like to try some different, funky things,” he acknowledges. “They use them on salads or for juicing. A lot of them use the funky varieties for cooking, like for a glaze on a chicken. It’s a little bit different.”

California’s Encroachment From Imports Navels are widely Phillips says the citrus industry is getting recognized as away from early varieties and “going heavy” the best eating into late varieties. For its part, Johnston Farms navels in the is concentrating many of its efforts on such late land, vice president of produce and floral at world. varieties as Autumn Golds, Powells, Barns- Kings Super Markets, also reports an increase fields, and Lane Late Navel oranges. Phillips in Clementine demand, which he says have “Wecan’t tell them blames imported citrus — Australian varieties, “taken the world by storm.”However, he does in particular — for causing the shift by not believe Clementines have supplanted Navel their business, but “stomping” on the front end of the domestic oranges or stolen any of their sales. Rather, he we’d like to see lower season. “You used to get some big money for sees the two varieties as “two different early fruit, but it doesn’t seem to work that way commodities,”each with their own distinctive retails, especially on anymore,” he laments. “There’s too much uses.“The Clementines are more for snacking Navels. Certain times of competition from other parts of the world.” and the Navel oranges are more of a dessert For the most part, Southern Hemisphere thing,”he details. “I see people bringing Navel the year, they’ve got to growers pose little threat to the California oranges to work with their lunch, but in work with us to ensure citrus industry simply because their product is between breakfast and lunch, they are snacking largely counter-seasonal. Offshore product on Clementines.” they are putting either typically hits U.S. stores during the summer Despite Clementines’ strong performance, on sale or on-shelf the and early fall months, while California citrus is Kneeland contends Navels are still the best- primarily available late fall through early selling citrus item in terms of volume. Truth be fruit that’s not only spring. “Most of the [domestic] industry told, sales of Clementines are actually flat- going to be the best finishes up just as the imports start coming in,” tening a bit, he says.Whereas Kings used to sell says Tracy Jones, vice president of domestic many 5-lb. boxes of Clementines, now it value to the customer, sales at Booth Ranches. “For the most part, primarily sells 3-lb. bags. While the economy but can make them they are not in direct competition.” could be part of the cause, Kneeland believes That said, there are some varieties, like it’s more of a matter of trying to avoid waste. the most money.” Valencia oranges, whose sales may have been “Sometimes, when consumers buy a 5-lb. box, — Barney Evans, Sun Pacific Marketing Cooperative harmed by Southern Hemisphere imports. by the time they get to that last piece of fruit, However, other citrus varieties have actually it’s not as good as the first piece of fruit,” he Evans agrees, calling the quality of been helped by imports because the resulting reasons.“Coming back to the store more often Mandarins “superior to the Navel orange,” year-round availability has served to introduce and buying that 3-lb. bag is preferred.” particularly before Christmas. According to more consumers to the fruit in question. The other major easy-peeler, the Mandarin, Mulholland’s Berry, one Mandarin variety “Imports have allowed the overall category to is also doing well, particularly for those that’s proving especially popular is the Satsuma. be available to the consumer on a near year- growers who cater to Asian niche markets. Other emerging types of citrus include round basis, so that has made it possible to buy That’s the case for Edison, CA-based Johnston W. Murcotts, Moro oranges, Gold Nugget a specific type of fruit whenever they want,” Farms, which enjoys “a tremendous support” Mandarins, and Ojai Pixie Tangerines, says Mulholland’s Berry. from Asian consumers. Salesman Harley according to Sunkist’s Fiori. Berry adds the Kings brings in many of its citrus imports Phillips questions other growers’ wisdom in Tango to that list. Basically,he explains, a Tango from South Africa.According to Kneeland, the planting Clementines in such enormous is just the “near-seedless offshoot of the W. quality is excellent, resulting in widespread numbers, wondering if they are “going to be Murcott,” adding, “That’s probably been the acceptance by consumers. Nonetheless, Knee- able to handle everything they’ve got planted.” most widely planted new citrus varietal in Cali- land acknowledges California citrus carries a As far as he’s concerned, growers should be fornia within the past five years.” certain cache that the imports simply do not paying more attention to Mandarins. “The Orange Cove, CA-based Booth Ranches have, no matter how high their quality.For that Mandarin is the queen of the citrus varieties,” LLC offers a variety called Spring Navels, which reason, Kings’ customers always look forward he declares.“Nothing compares to it, not even are available from the end of January into to the result of domestically grown product the Clementines.” April. Boasting a bright orange color, this and are willing to pay a good price for it.

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“The Clementines are retailers place citrus,such as Cara Cara oranges, Fiori describes lemons as a “secondary in the pharmacy department during the cold display item” because there is a primary more for snacking and flu season with incredible sales results. The driver, such as seafood, water, and alcoholic and the Navel oranges best merchants try new things, which usually or non-alcoholic beverages driving lemon result in leading industry outcomes.” demand. Sunkist has been working with are more of a dessert retailers to cross-promote lemons with the thing. I see people Delightful Displays And primary demand item, placing secondary Plentiful Promotions displays of lemons near the primary drivers. bringing Navel oranges According to Kneeland, Kings typically Such initiatives usually result in a 30 percent to work with their merchandises all the citrus together, using increase in lemon consumption. That’s different colored citrus, like lemons and limes, particularly important in today’s marketplace, lunch, but in between to break up the color of the display.Lemons — Fiori says, where high volumes of lemon breakfast in particular, the Meyer variety — have imports from Chile and Mexico are causing emerged as one of the top items in the citrus oversupply and downward pricing pressure. and lunch, they category, he says. “Lemons are the No. 1 food flavor additive in are snacking on Sun Pacific’s Evans reports strong demand the world,”he says. “We continue to promote for lemons, especially in the summer when that fact in our S’Alternative campaign, which Clementines.” iced tea and other libations are consumed encourages consumers to use lemons as an — Paul Kneeland, Kings Super Markets more frequently. alternative to salt.”

“There’s definitely a premium for domestic product,”he adds.“It’s very important that we have the solid quality and taste that comes out of California.” Likewise, Publix turns to imported citrus when necessary, but strives to stay with domestic product “as long as product availability and quality meet our specifications,” Brous notes. When it comes to Northern Hemisphere growers, Johnston Farms’ Phillips is concerned about China, which he brands“a major threat,” primarily due to its potential to produce a vast amount of fruit. He does find solace in the fact that the quality of Chinese-grown citrus has not proven to be very high, at least to date. So while the price may be right, he is confident discerning retailers are still going to seek out domestic product.“Chinese fruit is not particularly flavorful,whereas it’s widely accepted that the California Navel is the best eating navel in the world,” he says. “If an orange is an orange and somebody merely wants to put an orange on the shelf and they don’t care about flavor,it’s fine. But there are certain retailers who want to put an orange out that’s going to generate repeat business.” In reality, Berry claims the imports may actually be experiencing far greater challenges than domestic citrus in that they have to compete with the deciduous fruits — melons and grapes, for example — that are traditionally consumed during the summer months. Domestic citrus has the luxury of being available during the time of the year when people are accustomed to eating citrus. What’s more, they are widely available during cold and flu season, a selling point in and of itself. On that note, Sunkist’s Fiori shares, “We’ve had a few

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Promotion is key to boosting sales on all and Minneola Tangelos. partners also can help retailers determine types of citrus. Placing citrus in ads when it’s Retailers could benefit greatly if they were which citrus products are most appropriate to at its peak will help move more volume, says to partner more closely with growers, says be featured as the item of the month, says Booth Ranches’ Jones, as will building creative Evans. Doing so would not only come in Evans. He also feels a close partnership would displays and bringing in bins and pop-up handy in terms of promoting the product help retailers overcome the problem of being displays to create more shelf space. She recom- and securing eye-catching POS materials, it “stuck on any one size or grade.” mends retailers take advantage of would also help retailers determine appro- The need for retailers to be more flexible in high-graphic boxes and bins offered by priate pricing. That’s one area where Evans, terms of size is also a concern for Phillips. All growers. Sunkist, for example, sells oranges in in particular, feels progress has yet to be too often, he says, retailers are not open to 10-lb. themed cartons specially designed to made.“We can’t tell them their business, but promoting different sizes. Natural crop vari- promote consumption at sporting events, we’d like to see lower retails, especially on ances from year to year create challenges in that such as soccer, racing, and tailgating. Navels,” he says. “Certain times of the year, the sizing structure may be smaller or larger Overall,Fiori says Sunkist is pleased with the they’ve got to work with us to ensure they than a particular retailer finds desirable. support it has received from its retail customers are putting either on sale or on-shelf the “Chain stores could do a lot more for them- in promoting the citrus category.Retailers have fruit that’s not only going to be the best selves and their grower by being more flexible,” been supportive in helping the grower achieve value to the customer, but can make them he says. “Rather than getting hung up on its goal of placing secondary displays for items the most money.” particular sizes, they need to take a risk and do like Cara Caras, Gold Nuggets, Moro Oranges, Working more closely with their grower- something different.” pb

90 PRODUCEBUSINESS• OCTOBER 2012 MOM Floral Cover.qxd:Layout 1 9/27/12 2:19 PM Page 1 FLORAL MASTERS OF MERCHANDISING BOUQUETS

SPONSORED BY BAERO NORTH AMERICA INC. SUNSHINE BOUQUET COMPANY THE USA BOUQUET COMPANY

ADVERTISING SUPPLEMENT

OCTOBER 2012 l FLORAL MASTERS OF MERCHANDISING l PRODUCE BUSINESS 91 MOM Floral Inside Cover.qxd:Layout 1 9/28/12 2:28 PM Page 1

FLORAL BOUQUETSMASTERS OF MERCHANDISING

COMBINING PROMOTION AND EDUCATION is the targeted approach taken by sponsors of this Floral Masters of Merchandising BOUQUET supplement – our first in a series of PRODUCE BUSINESS Floral Guidebooks to help supermarket executives do a better job of merchandising and marketing fresh flowers and other floral products. In keeping with our mission to “INITIATE INDUSTRY IMPROVEMENT,” the editors of PRODUCE BUSINESS invite supermarket executives to give us feedback on this Floral Masters of Merchandising supplement as well as suggestions for future topics. Please contact us at [email protected] Retailers may also request a PDF of this supplement or printed copies of this guide (while supplies last) to pass along to your managers by contacting us at [email protected]. If you are a floral vendor and would like to see your category in the next Floral Masters of Merchandising supplement, please contact E. Shaunn Alderman, Floral Department Marketing Strategist, PRODUCE BUSINESS, 561-703-4010, [email protected].

www.ProduceBusiness.com www.FloralBusinessMagazine.com

Floral Masters of Merchandising is an advertising supplement in PRODUCE BUSINESS. In addition, FLORAL BUSINESS — a magazine providing important how-to information on topics such as pricing, labor, space-to-sales, seasonal promotions, care and handling, value-added services, etc. — is published and inserted into PRODUCE BUSINESS in our March, June, September and December issues.

92 PRODUCE BUSINESS l FLORAL MASTERS OF MERCHANDISING l OCTOBER 2012 Sunshine Bouquet.qxd:Layout 1 9/27/12 2:21 PM Page 1

SUNSHINE BOUQUET COMPANY 2011 NW 70th Ave., Miami, FL 33122 Contact: Karen Leggett, Sales & Marketing Cell Phone: 508-395-5038 [email protected] HAND-TIED BOUQUETS

CARE & HANDLING OFWith ROSES our fantastic new rose linear rows brings the customer farms we are focused on sharing HOW SUNSHINE MERCHANDISING into the department, but retail care and handling tips for our BOUQUET HELPS HOW-TOʼS FOR A signs actually sell product! The customers. Receive the roses from THE RETAILERʼS BOUQUET• Create a PROGRAMvisual “wow factor” fresh bouquet and rose categories 36-38 degrees on refrigerated BOTTOMSunshine LINE Bouquet’s manage- and high drama with flowers are the sales drivers of your floral trucks, and place directly into the ment team has well over 50 years arranged in vertical ribbons by department and can account for refrigerated warehouse. Main- of experience and expertise in price point in refrigerated case or 60-65 percent of your weekly taining the cold chain can extend marketing flowers to florists and fixture. sales. flower life. mass market retailers. We have • Identify an optimum five to Upon receipt of the flowers at over 235 hectares of roses and six retail price points to carry as a store-level: fresh flowers grown on our farms foundation of your program year- CROSS-MERCHANDISING 1. Immediately unpack cases in Bogota, Colombia, S.A. Harvest round. Build your promotions on OPPORTUNITIESDevelop promotional buzz in of flowers and remove any external and production occur daily for alternate retail prices. the store by creating merchan- packaging from individual flowers. transport to the United States. All • Display lowest retail price to dising ties with other departments 2. For roses, packed dry-cut 1 1 flowers are pre-cooled, treated highest in left to right presentation and tie bouquets into a theme or a to 1 ⁄2 inches from the bottom of with preservative and packed for consumer selection ease. contest for the stores. each bouquet with a stem cutter under stringent controls. • Integrate monochromatic • Candy, Bakery & Flowers- or knife. Hydrate in buckets of Increased shelf-life and lower color palettes and mixed bouquet Cross Promotion: Colorful warm water with preservative for shrink at store-level are results of price points within the program to bouquets can be partnered with three to four hours before the proper post-harvest treatment, add dramatic visual impact. mass grocery merchandising displaying for sale. Wet pack roses care and handling • Rely on Sunshine Bouquet to displays of holiday candy and come to you already conditioned All of our bouquets offer make timely changes to the recipe yummy baked goods for and packed in water filled with construction that is hand-tied, colors so they are seasonally Halloween, Christmas, or Valen- preservative. No additional cutting making them easy for store appropriate, while maintaining the tine’s Day treats. is necessary. personnel to merchandise in any same retail price points and • Fall Harvest Promotion: An 3. Because the rose has a refrigerated case or to upgrade branded names. ideal tie in with produce for the thick vascular system, it is critical into a profit making vase arrange- • Always display a clear sign rich colors of fall bouquets, with to its longevity that it be placed in ment. Our bouquets are 100 with name and price message indoor and hardy mums, pump- clean disinfected buckets on the percent vase-ready for the over each item for ease of kins, gourds, apples, cornstalks sales floor for optimal shelf-life. consumer purchase, making the customer shopping. Signs sell and fall perennials. Floral design 4. Roses are very thirsty and customers instantly successful in product! contests can be created for the should always have plenty of fresh creating their vase at home. best arrangement upgrade, or clean water. If a bunch ever gets We offer accessible store vase competition. left out of water, be sure to give it support, POP, signage and SIGNAGE & POINT OF • Sports Themes: Cheer on a fresh clean cut before replacing marketing materials. Field SALESunshine MATERIALS Bouquet believes our your favorite teams! Merchandise in the bucket. merchandising personnel is made flowers are of outstanding quality, fresh flower bouquets with grocery 5. Changing the water in available to support bouquet but you have to make it easy for items, GM, and beer and wine, buckets every other day is ideal for programs. Category management the consumer to shop the display. and participate in all mass display maximum shelf-life. expertise is available for category The goal is always to sell more contests. This generates customer 6. Always display item and analysis, promotions and metrics. flowers! Vertical merchandising in excitement year- round. price sign above each rose item.

OCTOBER 2012 l FLORAL MASTERS OF MERCHANDISING l PRODUCE BUSINESS 93 Baero.qxd:Layout 1 9/19/12 1:06 PM Page 1 Baero.qxd:Layout 1 9/19/12 1:07 PM Page 2 USA Bouquet.qxd:Layout 1 9/27/12 2:29 PM Page 1

THE USA BOUQUET COMPANY 1500 NW 95th Ave., Miami, FL 33172 Tel: 800-306-1071 www.usabq.com [email protected] FRESH CUT FLOWER BOUQUETS AND ARRANGEMENTS

The USA Bouquet Company is seasonal pies with corresponding flowers grown and harvested meet a leading national distributor of bouquets. Marketing our category specific social and environmental fresh-cut flower bouquets and outside the traditional box will lead standards. We promote participa- arrangements. The partnering of to long-term floral customers in tion in the Rainforest Alliance the best growers worldwide the future. Certification Program and we assures delivery of extensive partner with Fair Trade Certified. variety, quality and competitive Fair Trade ensures that flowers are pricing while at the same time CAUSEConsider MARKETING cause marketing as a used from Fair Trade Certified mitigating supply risk encountered successful way to generate sales farms. The farm workers are given by single-origin suppliers. during slower selling periods. the opportunity to invest in the We source more than 200 National or even more development of their communi- million stems annually with a vast regional causes give cus- ties, better schooling for their chil- choice by variety. Product is tomers the ability to give dren and work in an environment procured from several source back to the community. A that uses sustainable farming countries and a large per- shopper who does not normally methods. centage is purchased from buy flowers may do so for a U.S. domestic growers. united cause such as American Our market-driven Cancer Society, Autism Speaks, NATIONALOur national DISTRIBUTION manufacturing model allows us to American Forestry and Amer- and distribution footprint enables offer a global variety of ican Heart Association. The our team of more than 500 products and offer our USA Bouquet Company is employees to expertly serve our customers the security involved in several cause customers. The USA Bouquet of consistent supply. marketing programs. Cause Company is the only major floral Innovation in mar- marketing is our company’s distributor with full-service loca- keting, manufacturing, way of spreading awareness tions in six of the country’s main and logistics is vital to our about a variety of environmental ports of entry, Miami, FL; Atlanta, leadership role in helping our and social issues and partnering GA; Cresskill, NJ; Chicago, IL; customers drive sales outside with organizations to help make a Dallas, TX; and San Diego, CA. the lines. Cross merchandising, the floral positive impact in our world. Each of the company’s locations cause marketing, category man- department. We have many attend to all aspects of the retail agement and vendor managed market-driven promotion pro- industry with expert services inventory are just a few of the grams and cross-merchandising SOCIAL AND ranging from basic farm-made innovative initiatives the company ideas that help supermarkets drive ECOLOGICAL bouquets to high-end hand-tied brings to customers to improve sales not only in floral but other RESPONSIBILITYAssure your customers the bouquets to elaborate wedding both their top- and bottom-line departments. Our Essential Living flowers you offer from The USA designs. This forward distribution performances. Program ties seasonal fruit and Bouquet Company are grown in model has established the produce into bouquets that an environmentally friendly and company as a leading partner in promote recipe ideas. Our newest socially responsible manner. Certi- the e-commerce arena to the CROSSReach MERCHANDISINGfloral customers beyond Bake Shoppe Collection promotes fications are in place to ensure all world’s most recognized brands.

96 PRODUCE BUSINESS l FLORAL MASTERS OF MERCHANDISING l OCTOBER 2012 USA Bouquet.qxd:Ad 9/19/12 5:59 PM Page 1 PBH Floral.qxd:Ad 9/27/12 3:46 PM Page 1

a convenient hand-held tool to help your floral business bottom line

FLORAL BUSINESS is . . .

· a new magazine concept exclusively devoted to supermarket floral executives

· a magazine addressing marketing, merchandising, management and procurement concerns

· a magazine providing important how-to information on topics such as pricing, labor, space-to-sales, seasonal promotions, care and handling and value-added services

· a magazine that seeks answers from within the industry and reaches out to the retailers themselves – as well as leading floral marketers – for solutions

· a magazine that is easy-to-read and pass along – all the way down to the store-level floral managers

FLORAL BUSINESS – your tool kit to prosperity

Catch it Quarterly and online Every Day! Quarterly: March, June, September and December

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FRESH SUMMIT INTERNATIONAL CONVENTION & EXPOSITION October 26-28, 2012 Anaheim, California USA

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OCTOBER 2012 •PRODUCEBUSINESS 99 DOLE Fruit.qxd:Ad 9/24/12 11:23 AM Page 1 Aisle by Aisle.qxd:Page1.qxd 9/28/12 10:59 AM Page 1

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Booth #340 Booth #457 Booth #531 Booth #602 BC HOT HOUSE FOODS INC. OHL NORTH BAY PRODUCE, INC. VALUED NATURALS St. Langley, BC, Canada Brentwood, TN Traverse City, MI Dover, NJ The Star Group consists of Star Produce, The Customs Clearance process must be North Bay Produce, Inc. Valued Naturals is a premier snack, nut,

AISLENova 300 Produce, CFP Consolidated Fruit AISLEsmooth 400 and efficient. You need compe- AISLEis 500 a global, grower- AISLEdried 600 fruit and candy company with a Packers, BC Hot House Foods, Fresh tence, and you need service. Stop by our owned, year-round, unique produce snack program. Our Direct Foods and Patterson Farms. We booth for a chance to take a seat, charge fresh produce farmer’s-market-style racks coupled with work to create value and provide the your phone, take a drink, and relax for a marketing and dis- tailored programs, increases the prof- finest produce you will find worldwide. while. You can even enter your business tribution coopera- itability of your produce section by card into our drawing for an iPad. tive, headquartered improving your density of sales. Stop by in Traverse City, MI. our booth, chat and have a burger on us! The company’s 26 stock- holders are located in the United States, Argentina, Chile, Costa Rica, Guatemala, Mexico, Peru, and Uruguay.

Booth #619 Booth #628 Booth #634 Booth #638 FAIR TRADE USA GREAT LAKES INTERNATIONAL ¡SWEET GUSTO! MIXTEC GROUP Oakland, CA TRADING, INC Traverse City, MI Glendale, CA Fair Trade USA’s certifica- Traverse City, MI Introducing the Finest Produce of the tion model assures your Great Lakes International Trading has Americas™: an onion high in sugar, low in customers that the prod- been specializing in premium quality pyruvates. From the expertise of our ucts they buy come from dried fruits, nuts growers to the finest seed available, we’ve farms with the best social and edible seeds created an excessively high quality pack and environmental prac- for over 25 armed with a marketing campaign that tices and provides an years. We offer presents the brand directly to the con- MIXTEC Group is the #1 Executive opportunity to give back sealed-in “peak sumer. Search Firm in Produce. We provide to these farming commu- season flavor” exceptional executive recruitment and nities. By certifying your existing supply and freshness in leadership consulting to the industry’s chains, Fair Trade USA can help satisfy each package utilizing vacuum-sealed top companies. your customers’ growing demands for technology. In addition to our Vac Pack supply chain transparency and environ- line, we offer Stand-Up Bag presentations. mental awareness.

Booth #743 Booth #817 Booth #848 Booth #880 FIRSTFRUITS MARKETING CAVENDISH PRODUCE HBF INTERNATIONAL MAXCO PACKAGING Yakima, WA Charlottetown, PE, Canada Sheridan, OR Parlier, CA FFM offers a broad line of organic tree At Cavendish Produce, we are the Fresh HBF International sells a wide variety of For over four decades, Maxco Supply, Inc.

fruits along with exclusive offerings of the AISLEPotato 800 Specialists offering an assortment the freshest berries under the Hurst’s has been an innovator in packaging AISLE 700 Opal and Sweetie varieties of apples. of value-added and mainstream potato Berry Farm brand. design and manufacturing for the agricul- Stop by to talk about products. We are your one-stop supplier From blueberries tural industry. The com- our special promotion- of top quality potatoes. to raspberries to pany’s ability to listen and al opportunities that specialty varieties respond to the needs of include the “Take a Bite such as cranber- its customers has kept Out of Hunger” and ries, blackberries Maxco on the leading NFL “Fuel up to Play and red currants, edge of technology and 60” market campaigns. HBF offers premium berries all-year industry trends. round. Stop by for a sample of what “truly fresh” means.

Booth #934 Booth #938 Booth #968 Booth #1028 DPRODUCE MAN ONLINE BALL DESIGN YAKIMA FRESH THE IDAHO POTATO Half Moon Bay, CA Fresno, CA Yakima, WA COMMISSION The most complete integrated account- Specialists in Produce and Food Market- Our growing, packing and shipping expe- Eagle, ID AISLE 900

ing & management software package, ing Design for over 30 years. Work rience reaches AISLEThe 1000 Idaho Potato specifically designed for the produce includes: websites, social media, advertis- back to the early Commission is the industry since 1980. Come to see dPro- ing, logos, packaging, in-store POP, trade 1900’s. Yakima marketing arm for the duce Man Online. With an Internet con- show displays, and photography. Every Fresh was formed entire Idaho potato nection, you will have your company at day, we think about food. Produce in par- by three of the Industry. Started 75 your fingertips ticular. How to design for it dynamically. most successful years ago, the organization has Advertise it creatively. Promote it effec- Northwest grow- created the well known the “Grown in tively. ers: Roche, Stadelman and Yakima Fruit. Idaho®” seal, which symbolizes quality, Yakima Fresh is your source for all your known around the world. Northwest apple, cherry and pear needs!

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Booth #1039 Booth #1053 Booth #1073 Booth #1074 SCOTT FARMS, INC. AMERICAN PACKAGING VIRTUALONE WISH FARMS Lucama, NC CORPORATION Plant City, FL Plant City, FL Scott Farms, Inc., along with Scott Farms Story City, IA VirtualOne provides technology to solve Wish Farms, the International, is a family owned and oper- American Packaging is a flexible packag- safety and business challenges for the largest strawberry shipper/grower in ated grower-packer-shipper in North Car- ing converter providing: expertise in produce industry. Its patented FreshQC® Florida, is proud to continue its tradition olina providing a full line of fresh sweet building breathable solution integrates data collection, trace- of providing high quality produce since potato packs to customers around the specifications to back and payroll capabilities to deliver 1922. It represents more than 1,500 world. With offices in the U.S. and U.K., extend the shelf- superior results for the produce industry. acres, and ships approximately 3 million we offer direct, personalized customer line of produce, flats of strawberries, 6 million pounds of service on a anti-fog films & blueberries and 1 million packages of domestic and registered anti-fog vegetables a year. international coatings for clear basis. product visibility, laser micro-perforation for high respiration products and easy package opening, microwave steam release technologies, and more.

Booth #1078 Booth #1124 Booth #1132 Booth #1138 CRUNCHIES FOOD COMPANY ALLEN LUND NEW YORK APPLE NATALIE’S Westlake Village, CA COMPANY ASSOCIATION ORCHID ISLAND Crunchies Food Company offers a wide La Canada Victor, NY JUICE COMPANY variety of delicious and nutritious freeze AISLEFlitridge, 1100 CA New York Apple Association represents Fort Pierce, Florida dried fruits and vegetables. Crunchies Established in New York apple growers helping to grow We are a privately owned business start- are all natural with 1976, the Allen Lund Company is a third- sales for consumer favorites such as ed by current CEO Marygrace Sexton. no added sugars party transportation broker, working with McIntosh, Empire, Gala, Honeycrisp, The company was founded in 1989 and no preserva- shippers, growers and carriers across the Cortland, Fuji and many more! when Sexton began squeezing juice from tives. All gluten free, nation to arrange the transport of dry, oranges grown in the family groves with vegan, kosher, non- refrigerated and flatbed freight. Addi- her infant daughter Natalie at her side. GMO and Made in tionally, the Allen Lund Company has an Today the company, named after her the USA. international division, ALC International. daughter, still squeezes juice every day, fresh to order.

Booth #1164 Booth #1170 Booth #1274 Booth #1280 CURRY & COMPANY IPPOLITO FRUIT AYCO FARMS PECO PALLET Brooks, OR & PRODUCE, LTD. Pompano Beach, FL Yonkers, NY Expect the Best™ from our 52 weeks/year Burlington, ON, Canada Come and see about all the new changes PECO Pallet is a blueberry, sweet onion and Visit North America’s largest Brussels AISLEat 1200 Ayco Farms. New building, new staff, North American red/white/yellow onion programs. Our sprouts grower/shipper, and new offices, new products. It’s all leader in pallet rental seasonal Vidalia Sweet Carrots and deli- let’s talk about getting your about the future at the Ayco services with an outstanding cious West coast blackberries create company on a year-round booth. Your source for Mini Me reputation for quality, service, and excitement in your stores. Brussels sprout program! Watermelons, Cantaloupes, sustainability. For more information, visit We also offer a full line of Honey Dews, Asparagus, Papayas, www.pecopallet.com. vegetables, including arti- Colored Bell Pep- chokes, iceberg, broccoli, pers, Avocados, cauliflower, romaine hearts, Limes, Peas and green onions, leaf lettuces Broccoli. and specialty vegetables.

Booth #1286 Booth #1286 Booth #1332 SUN PACIFIC CALIFIA FARMS POTANDON PRODUCE Pasadena, CA Pasadena, CA Salinas, CA Growing opportunities for over 40 years! Odwalla founder Greg Steltenpohl has

A leading California grower, shipper and teamed with farming visionary Sun Pacific AISLE 1300 marketer of Oranges, Cuties® to bring you Cuties Juice™. Cuties Juice™ California Clementines, and Smoothies have NO sugar, NO dyes, Table Grapes and Kiwis. NO preservatives, and are all 100% Juice. Visit the booth to see Califia Farms also Visit Potandon for a fresh perspective on our newest innova- produces exciting potatoes and onions. Samples distrib- tion, “Ripe & Easy™” healthy beverages in uted and entertainment on the hour. Kiwis and visit with emerging categories. Also visit our Sampling Trailer in the Ana- one of our experi- heim Marriott parking lot for a taste of enced team members the 1950’s! about how we can help grow your business.

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Booth #1426 Booth #1510 Booth#1544 LGS SPECIALTY SALES, SAMBRAILO PACKAGING CALIFORNIA GIANT LTD. Watsonville CA BERRY FARMS Bronx, NY Since 1923, Sambrailo Packaging has Watsonville, CA

AISLELGS 1400 is your year-round source for AISLEbeen 1500 known for its innovative packaging We support breast premium produce from around solutions. We will be featuring our cost- cancer awareness the world. Our core group of com- saving Mixim Packaging Systems, as well and prevention in modities includes Hass avocados, as our compostable Fibre-Pack containers October. Visit our Clementines and other citrus, and new low-profile blueberry and bush- booth to learn grapes, apples, pears and stone berry clamshells. more about this fruit. We offer a variety of innova- nationwide effort tive and attractive new packages and how to partner with us for a win-win and pallet configurations to fit the cause-marketing program. needs of different retailers and family groups. See our ad on page 114

Booth #1575 Booth #1611 Booth #1634 Booth #1710 PURITY ORGANIC CHRISTOPHER RANCH DURAND-WAYLAND INC SORMA USA San Francisco, CA Gilroy, CA LaGrange, GA Exeter, CA Purity Organic Produce (formerly Pacific Christopher Ranch’s new Halloween Durand-Wayland and Greefa and others Big news at Sorma USA with the opening

Organic Produce) has been packing, ship- AISLEboxes 1600 will boost sales on one of the are partners combining advanced tech- AISLEof 1700 the new manufacturing plant in Visalia, ping, and marketing organic fruit & veg- biggest consumer shopping days of the nology with expert CA, to better serve the cus- etables grown by high quality organic year! These striking and colorful display sales, service and sup- tomers in the most impor- farmers for almost 20 years. We work cartons will draw customers to your pro- port. Our complete line tant agricultural region of with farmers primarily located through- duce dept. for garlic and other cross-mer- of produce-packing the world. Sorma also intro- out the Western United States, Latin chandised items. equipment includes: duces Ecopunnet, a new America, and New Zealand. electronic grading by package concept with a tray blemish, sweetness, wrapped in net and an internal defect, weight, dimension, shape, attractive handle. and color.

Booth #1808 Booth #1820 Booth #1832 Booth WASHINGTON STATE DRISCOLL’S WHOLESUM FAMILY FARMS #1838, 1848 PRODUCE PAVILION Watsonville, CA Nogales, AZ MELISSA’S Moses Lake, WA ONLY THE FINEST BERRIES™ are packed Wholesum Family Farms produces a full Los Angeles, CA AISLEWashington 1800 State is one of the premier under the Driscoll’s brand. Continually line of organic tomatoes, peppers, Come see the winner of the TV Food produce producing areas in the world. delighting berry consumers with year cucumber, eggplant, zucchini, hard Network “The Great Food Truck Race” Come learn more about the high quality round availability of conventional and squash and mangos. Wholesum Harvest season 2 at our booth cooking up Melis- fresh items available from our farms. organic strawberries, blueberries, raspber- is Fair Trade certified and is committed to sa’s produce and food. We will be featur- ries and blackberries. For over 100 years, sustainable practices. Wholesum grows in ing at the booths: Lemon/Lime Combo the Driscoll’s brand has been trusted and both Mexico and the USA and distributes 16 oz., Finger Limes 3 oz., Jeju Mandarins recognized for superior quality. coast to coast. 16 oz., Pink Pumpkins to support Breast Cancer Awareness.

Booth #1878 Booth #1890 Booth #1894 Booth #1902 PERO FAMILY FARMS LASERSHARP FLEXPAK SAGE FRUIT COMPANY FRESH SOLUTIONS COMPANY LLC SERVICES LLC Yakima, WA NETWORK, LLC

Delray Beach, FL Vadnais Heights, MN Sage Fruit Company is a grower/shipper/ AISLEMoses 1900 Lake, WA Pero Family Farms Food Company LLC is LaserSharp FlexPak Services specializes in packer of high quality We are your one choice for superior

INGTON a vibrant, 100-year old, privately owned contract laser converting services for the ASH apples, cherries potato and onion category performance. business. We specialize in the retail and flexible packaging industry. LaserSharp W and pears With ownership of over 60,000 produc- wholesale of high-quality produce as a FlexPak Services uses innovative and from Wash- tion acres, the Partners are: Sterman grower, processor, cost-efficient laser processing techniques ington State. Masser, Inc.; Keystone Potato Products, packager, marketer to achieve superior results for flexible We specialize LLC; Michael Farms, Inc.; Basin Gold and distributor. packaging applications. in marketing Cooperative, Inc.; Green Thumb Farms, programs to help you grow your sales. Inc.; Red Isle Produce Company, Ltd.; NoKota Packers, Inc.

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Booth #1912 Booth #1912 Booth #1912 Booth #1912 FLORAL BUSINESS PERISHABLE NEWS.COM PERISHABLE PUNDIT PRODUCE Boca Raton, FL Boca Raton, FL Boca Raton, FL BUSINESS Come visit Booth 1912 and pick up the Visit our booth to sign up for a free sub- There is nothing quite like Jim Prevor’s Boca Raton, FL newest tool to help supermarkets floral scription to PerishableNews.com, the first Perishable Pundit. Access the Pundit at Covering marketing, executives become bet- news site written exclusively for the entire www.perishablepundit.com and see for merchandising, man- ter marketers, merchan- perishables arena. Be among the growing yourself. Or come by our booth and agement and procure- disers, managers, and list of subscribers who get instant, daily or meet Jim Prevor and the whole staff. ment issues that affect buyers of floral prod- weekly e-mailed announcements. the sales of produce ucts: FLORAL BUSINESS. and floral items, PRODUCE BUSINESS uniquely “initiates industry improvements.”

Booth #1916 Booth #1957 Booth #1960 Booth #1988 THERMAL TECHNOLOGY BABÉ FARMS KEYSTONE FRUIT ABC RESEARCH Ardmore, PA Santa Maria, CA MARKETING, INC LABORATORIES Babé Farms of Santa Maria, CA, is the pre- Greencastle, PA Gainesville, FL mier label top chefs and fine retailers We are a single-source grower, packer ABC Research Laboratories, an ISO 17025 look to for their specialty vegetable and shipper of year-round Certified accredited food testing facility, provides needs. Come see our NEW RETAIL LINE Sweet® Onions. We have year-round sup- consultations and analytical results across Thermal Technologies is a provider of of packaged gourmet vegetables; assort- plies of Walla Walla® River, Vidalia® and the entire spectrum of the food industry. produce ripening room systems. Our ed baby beets, specialty radishes, baby Mayan Sweet® sweet onions, plus Dedication patented Tarpless design is the most rainbow carrots, baby fennel, colorful hybrid red, white and yellow onions. to personal- widely used in the marketplace, process- baby cauliflower and baby purple arti- We also supply southern peaches, ized service, ing over 100 million pounds of bananas chokes. eastern apples and asparagus. coupled with across the United States, Canada and superior sci- Mexico every day. entific practices, is the foundation of ABC Research Laboratories’ success.

Booth #1991 Booth #2041 Booth #2041 Booth #2045 RPE INC. CATALYTIC GENERATORS, LLC QA SUPPLIES LLC TANIMURA & ANTLE Bancroft, WI Norfolk, VA Norfolk, VA Salinas, CA RPE is a year-round grower and shipper Our latest innovation is the Smart-Ripe Our new handheld Based in California’s Sali- of potatoes and onions that specializes in AISLEEthylene 2000 Management System, which Ethylene Detector is nas Valley, Tanimura & providing category innovation and best- provides PC-based control, mon- an impressive instru- Antle is a family owned in-class solutions for its customers. RPE itoring and data logging of ment featuring the and operated business packs a full line of onions, potatoes, ethylene application in latest in sensor tech- focused on quality, along with a full line of value-added and ripening rooms. This nology and a high freshness and innovation. Tanimura & specialty prod- innovation will allow the level of reliability. The state of the art sen- Antle produces a full line of fresh vegeta- ucts. For more ripener to enter an sor ensures speed and reliability, while the bles including Artisan Lettuce, Artisan information, visit ethylene set point and data logger feature allows readings and Romaine, Artisan Boston, Artisan Red RPEproduce.com. achieve complete con- events to be stored together with the Onion, Living Lettuce, Iceberg, Broccoli, trol of the ethylene level times and dates. Cauliflower and Romaine. in any ripening room.

Booth #2173 Booth #2189 Booth #2190 Booth #2191 SILVER CREEK SOFTWARE ATLAS PRODUCE & DIST., INC. WEST PAK AVOCADO HOLLANDIA PRODUCE/ Boise, ID Bakersfield, CA Temecula, CA LIVE GOURMET

AISLEOur 2100 accounting/financial management Grower / Shipper of Caramel Naturel West Pak is celebrating 30 years of Cali- Carpinteria, CA software targets the fresh produce indus- Brand, Medjool Dates, Date Coconut fornia growing this year! Not only do we Live Gourmet hydroponically grown liv- try and offers unique capabilities to pro- Rolls, Date Almond Rolls, Jumbo Dried have regional distribution and ripening ing lettuces, cresses and leafy greens by duce industry executives with traceability, Grapes and Table Grapes. All Items are centers across the U.S., we’ve created Hollandia Produce. “Absolutely FRESH customer menus, contract pricing, lot all natural and grown in value-added services such as our JustRipe! because it’s still control, route accounting, Visual Internet California. avocado pre-conditioning program. alive!” Experience online ordering, EDI, landed cost and the difference fresh- much more. ness can make.

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Booth #2266, 2368 Booth #2274 Booth #2288 Booth #2424 NEW MEXICO DEPARTMENT DOMEX SUPERFRESH RED BLOSSOM SALES AVOCADOS FROM MEXICO OF AGRICULTURE GROWERS Salinas, CA Los Angeles, CA Las Cruces, NM Yakima, WA Your customers are Our customers...We Green chile is just the start of what’s good Domex Superfresh Growers® is a leading Get That! Enticing your customers with AISLE 2400 AISLEat 2200 the NEW MEXICO - Grown with Tradi- grower and shipper of apples, pears and fresh, sweet, delicious berries, day after tion® Pavilion. Follow your nose to our cherries from the Pacific Northwest day. coveted quesadillas and learn about our including our new club apple variety, The first 100 people in line to meet the top-notch pecans, sweet onions, water- Autumn Glory™. charismatic chef will receive a free Avoca- melons, pinto beans, and pumpkins. Pro- dos from Mexico cookbook to be auto- duce-bagging equipment is available, too. graphed by Chef Pepín. Back by popular demand this year is the colorful and glamorous ambassador of Avocados from Mexico, Miss Ava Cado, who will be at the booth all weekend to greet attendees.

Booth #2454 Booth #2494 Booth #2510 Booth #2580 SPICE WORLD ITAUEIRA MELONS VILLAGE FARMS THE LITTLE POTATO COMPANY Orlando, Fl Fortaleza, Ceara, Brazil Eatontown, NJ Edmonton, AB, Canada Spice World introduces “Squeeze Garlic Itaueira is a family-owned company that From our Garden Fresh Flavor® exclusive From The Little Potato

in Olive Oil” and “Grill Garlic-Qu Sauce.” grows the most delicious Canary Yellow AISLEtomato 2500 varieties, Heavenly Villagio Company comes a Specialist in Garlic since 1949. Spice melons in Brazil. Exporting Marzano®, or new exquisite Heirloom®, brand new revela- World is the No. 1 jarred garlic in Ameri- them to US and Canada to our luscious seedless long English® tion to the premi- ca’s Supermarkets (IRI Data) Spice World since 2008, the com- cucumbers and Sweet Bells® peppers, we um and value-added owns and operates two processing plants pany will be serving have you covered 365 days a year. produce market: — one in California and one in Florida. melon samples in its Potato Jazz. Potato booth to prove their Jazz microwave kits sweetness and amaz- provide an exciting, ing taste. healthy side dish in minutes flat with no muss, no fuss!

Booth #2614 Booth #2702 Booth #2802 Booth #2849 MONTEREY CALIFORNIA AVOCADO CALIFORNIA GROWN PAVILION SHENANDOAH MUSHROOMS, INC. COMMISSION Modesto, CA GROWERS Knoxville, TN Irvine, CA Harrisonburg, VA AISLESHOPPERS 2600 LOVE our NEW SUSTAIN- AISLEVisit 2700 booth #2702 to meet Top Chef AISLE 2800 Organic Living Herbs ABLE TILLS: Monterey’s new, sustainable Masters contestants Mary Sue Milliken are kept on the kitchen packaging delivers the best in flavor and and Susan Feniger and sample their Cali- windowsill to ensure the nutrition with innovation as natural as fornia Avocado creations. You can count freshest, healthiest herbs our Mushrooms. on California Avocados spring through California Leafy Greens Marketing Agree- are available everyday. fall! ment (in the California Pavilion). The LGMA is a model program that was created to protect public health by establish- ing a culture of food safety on leafy greens farms

Booth #2853 Booth #2861 Booth #2862 Booth #2902 CHANTLER PACKAGING INC NATIONAL RAISIN COMPANY CALIFORNIA AG-PAK INC. Mississauga, ON, Canada Fowler, CA SUN DRY FOODS Gasport, NY

As a fully integrated manufacturer of flex- National Raisin Company is pleased to Danville, CA AISLEAg-Pak, 2900 is exhibiting the latest technolog- ible plastic packaging, Chantler Packaging introduce its new line of specialty baking Sweet, full-bodied and intensely flavored, ical innovations in produce weighing and takes pride in being able to offer cus- items, uniquely positioned in the Dried we sun-dry only the finest California optics. Featured in our booth: NEWTEC tomers these high levels of certification Fruit Category to help consumers bake grown tomatoes. Our unique trade pro- 4014XB1, a flexible weigher is designed for food safety in addition to their ISO more delicious treats economically and motion and marketing programs are for stringent sanitary practices, data 9001:2008 manufac- easier than ever designed to maximize your acquisition for PTI compliance, Vario turing-to-customer- before. New items sales and profits in this Speed Technology, and packaging needs certification and include a Fruitcake important niche category. options. OMRI Listing for Blend, Walnut Bak- PrimePro® Shelf Life ing Blend, Almond Extension film. Fruit Mix and Dates.

108 PRODUCEBUSINESS• OCTOBER 2012 Pundit.qxd:Layout 1 9/14/12 3:58 PM Page 1

What is a Pundit? Merriam Webster — a person who gives opinions in an authoritative manner usually through the mass media. What is the Perishable Pundit? Just ask our readers —

“... providing substance, thought-provoking opinions and, at the very least, waking up many.” “Excellent commentary on the status of regulators’ positioning on food safety for the produce industry.” “... bringing some common sense to the E. coli issue of late.” “... a lively and engaging forum for discussion of issues relevant to the produce industry.” “... thought-provoking commentary with robust dialog.” “... keeping the debate going...” “... kind of an investigative reporter...” “... extensive coverage leaves no subject without great healthy discussion, and no topic is too sacred.” “Your courage in stating your opinion and your reaction to criticism is respectful and honest.” “... focused on the complicated issues relating to food safety in produce.” “... teaching the industry quite a bit about the power of the internet.” “... an education for those of us who are still refining our computer skills.” “... a valuable service.” “... the most important journalism in the industry, and now we get them every day... you have become the ‘voice’ ...” “Your analysis of the state of leadership in the produce industry past, present, and future is right on!” “... a welcome part of the day that stimulates the mind and encourages us to think about and consider a different point of view.” “... writing with heart and insight...” “... one of my ‘must-read’ e-mails everyday!” “Our industry has traditionally not been associated with being ‘deep thinkers’, and you have definitely become our Thought Leader.” “... a resource that delves deeply into issues impacting our industry. Kudo’s!” “Keeps us thinking.” “... spreading your abundant common sense on a daily basis.” “... most refreshing.” “The Pundit does, in fact, incite reactions and cause good thinkers to think harder and longer on topics that are current and newsworthy.” Catch the Perishable Pundit every day. Go to www.perishablepundit.com click on the “Subscribe Today” button and receive a daily copy of Jim Prevor’s Perishable Pundit via e-mail. Aisle by Aisle.qxd:Page1.qxd 9/28/12 11:03 AM Page 8

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Booth #2922 Booth #2932 Booth #2960 Booth #2975 GRIMMWAY FARMS IDAHO-E. OREGON ONIONS BANACOL KEENAN FARMS, INC Bakersfield, CA Parma, ID MARKETING Kettleman City, CA Grimmway Farms is delivering new inno- The Idaho-E. Oregon Onion Committee’s CORP. New for 2012, Keenan Farms will debut vation to the produce category. Our booth at PMA Fresh Summit will be a def- Coral Gables, FL revised pistachio packaging including the focus is providing the best quality pro- inite crowd pleaser. With a Banacol is a multina- official American Health Association’s duce, from carrots through organic veg- cool football theme, great tional corporation, (AHA) heart-healthy food logo. The etables, while delivering impeccable ser- tailgate food will be created dedicated to the AHA has certified vice. Visit our booth to learn more about by the Committee’s Execu- production and distri- the nutritious our products. We value your business. tive Chef, Nick Duncan, bution of agro-industrial power of the pis- and the Committee will be products, including pineapples, tachio. We’re also giving away football-related bananas, plantains, tropicals (yucca), highlighting our promotion items AND and frozen products. use of Sea Salt on will be drawing for roasted pistachios. larger prizes including a large Weber gas grill.

Booth #3002, 3202 Booth #3014 Booth #3058 DOLE CARLSON AIRFLO DNE WORLD FRUIT SALES LLC Westlake Villages, CA Brooklyn Park, MN Fort Pierce, FL AISLE 3000 Dole will be showcasing the Yonanas Are you interested in: reducing shrink, DNE World Fruit LLC is one of the largest banana frozen dessert maker, which reducing labor, increasing produce sales, independently owned grower, packer and makes delicious, low-cost, healthy or transforming your current merchan- marketer of fresh Florida citrus. DNE frozen treats in just minutes, and is dising? Carlson AirFlo® Merchandising offers year round citrus of the highest part of Dole’s ongoing commitment Systems get results! Come see us about quality to its customers. Our experience to reducing waste and addressing the more effective, cost-efficient solutions in in growing, packing and marketing fruit No. 1 complaint by banana lovers: your produce department. from Florida and Texas as well as sourc- having to throw away over-ripe fruit. ing fruit from around the globe can help grow your citrus profits all year.

See our ad on page 100

Booth #3070 Booth #3114 Booth #3118 Booth #3121 JEMD FARMS AMPORT FOODS FOX PACKAGING EDINBURG CITRUS Kingsville, ON St. Paul, MN McAllen, TX ASSOCIATION JemD Farms: Red Sun and Golden Sun “Flagstone Foods (formerly Snacks Hold- Fox Packaging is an industry leading

AISLE 3100 Mission, TX produce provides you with greenhouse ing Company), headquartered in St. Paul, packaging company manufacturing and The growers of Edinburg Citrus invite perfection — all year long. We’re known MN, owns Ann’s House of Nuts and distributing customized mesh and you to enjoy the fruits of our labor-deli- as your greenhouse go-to team, with six Amport Foods. Ann’s House of Nuts, with poly/mesh bag solutions. Our unique 2- ciously sweet, thin-skinned and juicy, North American distribution cen- production facilities layer Ultra Shield film prevents nearly Texas Red Grapefruit and Oranges. We ters. Stop by booth 3070 to learn in North Carolina, is 100% of potato greening. are committed to producing top quality about our “Artisan the largest manufac- fruit and assisting our customers in ideas Series”, a new and turer and marketer of and programs to increase consumer innovative line of trail mixes in the sales. specialty green- world. house produce.

Booth #3150 Booth #3184 Booth #3185 Booth #3248 MARIE’S GRAPPLE INTELLEFLEX ARGENTINA-FUNDACION Dallas, TX FRUITS Santa Clara, CA EXPORTAR Marie’s®, the leader in Refrigerated Pro- Wenatchee WA The Intelleflex Freshness Management™ AISLE 3200 Ciudad de Buenos Aires, duce Dressing nationally, uses the finest Grapple® brand apples — Reaching cus- solution enables produce industry mem- Argentina ingredients to create our great tasting tomers with a new taste and flavor. Try bers to reduce loss due to spoilage, dressings with the homemade flavor your one of the latest juicy, crispy, up-and- improve quality and address traceability customers love. Marie’s — makes the coming gourmet Grap- requirements. Intelleflex Ordinary Extraordinary! ple® brand apples. delivers on-demand visibility for tracking and monitoring Come to Argentina’s booth and make the temperature and condi- your off-season business by meeting tion of produce, and frozen Argentine growers and exporters of fresh and packaged foods from pears, apples, stone fruit, blueberries and the producer to consumer. cherries.

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Booth #3260 Booth #3278 Booth #3385 Booth #3420 YERECIC LABEL DULCINEA FARMS REDLINE SOLUTIONS WELL•PICT BERRIES New Kingston, PA Ladera Ranch, CA Santa Clara, CA Watsonville, CA Yerecic Label designs and manufactures At Dulcinea® our commitment is to deliv- Naturally developed to deliver in both on-pack labels that deliver proven sales er only the highest quality, best tasting looks and taste, Well•Pict Strawberries AISLE 3400 AISLE 3300 results to increase our customer’s top fruit. We are passionate about providing and Raspberries are eye-catching on dis- line. Our labels educate the freshest produce and flavor con- play, with big flavor that will have cus- consumers in the sumers love year-round. tomers returning for more. Fall crops are store and inspire RedLine Solutions provides practical PTI up in volume and outstanding in quality, them to make a and Inventory control solutions for grow- while Oxnard-grown raspberries will be purchase by pro- er shippers. Our traceability suite collects available from Nov to Jan. viding instant meal and manages information as work is per- solutions that formed, providing detailed real time make the buying operational insights in the field, packing decision SIMPLE! shed, or cooler.

Booth #3420 Booth #3428 Booth #3510 Booth #3540 JACOBS, MALCOLM, AND C.H. ROBINSON L&M BASKET EASE® BURTT Eden Prairie, MN Raleigh, NC Prior Lake, MN San Francisco, CA C.H. Robinson is a supply chain solutions L&M is a fully integrated, year-round sup- The easiest and fastest way

Since 1888, Jacobs, Malcolm, and Burtt provider with over 100 years of experi- AISLEplier 3500 of fresh produce, focusing on four to make fruit baskets. Our has provided the highest ence in produce sourcing. We provide core categories: vegetables; potatoes and baskets and trays have quality produce. From solutions through improved efficiencies, onions; apples, pears and cherries; and patented designs for fruit our specialty superior technology, access to growers, limes, mangoes and Texas grown. Visit baskets. All the supplies asparagus to our suppliers and temperature-controlled car- booth #3510 to learn more about our needed to create variety of other riers. Stop by booth 3428 to learn more! exciting new Idaho Potato program and beautiful fruit and commodities, JMB Michigan Vegetable program and more! gift baskets stocked consistently delivers the year round. quality and service that have kept us in business for over 120 years.

Booth #3574 Booth #3585 Booth #3733 Booth #3911 EPA BLUE CREEK PRODUCE OXNARD GROWERS/SHIPPERS DADE SERVICE CORPORATION Zapopan, Jalisco, Mexico St. Charles, IL Ventura, CA Daytona Beach, FL EPA® is a Mexican leading company in Blue Creek Produce Cargo Data Corporation’s Boomerang Dade Service Corporation has over 50 production, commercialization and is a grower and AISLEand 3700 Boomerang RF (radio frequency AISLEyears 3900 of experience in the industry! We development of agricultural plastic films. distributor of enabled) reusable temperature recorders have design-built more than 1,000 Tarp- We specialize in plastic mulch, advanced fresh produce are designed for refrigerated dedicated Free Ripening Rooms that Ripen more solarization, high barrier films, micro-tun- with over 85 years logistics and captive delivery fleets. These than 200 million bananas and 50 million nels, five layered greenhouse and hoop of combined produce experience. We innovative reusable avocados every day!. films. specialize in greenhouse grown tomatoes digital temperature and peppers with transportation capabili- recorders provide ties from pallet orders to full truckloads cost effective, high throughout the country. value temperature monitoring in closed loop, round-trip transportation systems.

Booth #3930 Booth #3973 Booth #4016 Booth #4128 SEALD-SWEET INTERNATIONAL LIGHT SPEED LOGISTICS INC. TEMKIN INTERNATIONAL, INC SUNLIGHT INTERNATIONAL Vero Beach, FL Calgary, AB, Canada Payson, UT McFarland, CA AISLE 4100 Seald-Sweet is a leading supplier of the full AISLEAs 4000 an AIB-audited domestic packaging New in 2012 from Sunlight International: citrus category and other fresh produce manufacturer with a 30-year track record, Pretty Lady for the Summer, which such as apples, grapes, pears, stone fruit, Temkin provides exceptional flexible film includes stand-up colander bags and POS pineapples and more. As a vertically inte- packaging solutions cards. Preview a sample bin for the 2013 grated company, we grow and nurture Light Sped Logistics, Inc. is always there with compostable season at the booth. Favorite brands Pret- fresh produce from seed to consumer for you with over 250 refrigerated units, and recyclable film ty Lady for the Holidays and Harvest with the highest food safety standards satellite tracking on all our units, 24 hr. options as part of Hobgoblin return and consistent quality. hotline available for last minute orders, the company’s com- to the produce one stop shop for all your transportation mitment to environ- aisle as well, cre- needs, team of professionals that are ded- mental sustainability. ating a delicious icated to customer satisfaction. assortment for consumers.

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Booth #4138 Booth #4146 Booth #4169 Booth #4172 OCEAN MIST FARMS WHOLLY PAKSENSE CRAVO EQUIPMENT LTD Castroville, CA GUACAMOLE Boise, ID Brantford, ON, Canada Visit our booth for all your 2012 holiday Saginaw, TX PakSense, Inc., an innovator in sensory For 35 years, Cravo has developed retail promotional plan- Wholly Guacamole® solutions for packaging, has launched the retractable roof structures to allow grow- ning for the top of con- Avocado Ranch Snack XpressPDF temperature monitoring label, ers to utilize the best of mother nature sumer’s mind: cooking Packs snack packs are which tracks time and temperature of and a greenhouse. Our unique produc- vegetable category. As a full of the delicious perishable items. Labels are flat and fea- tion systems have been year round grower of ranch flavor you love without compro- ture an integrated USB connection point. used around the world fresh Brussels sprouts, mising the nutritional goodness often successfully for many Ocean Mist Farms will found in the leading ranch dressings. crops. Come learn debut new Brussels Available in your grocer’s produce sec- about our new sprout packs just in tion January 2013. low cost X-Frame for berries, tree fruits time to support the and vegetables. peak of cooking vegetable sales season.

Booth #4202 Booth #4260 Booth #4318 Booth #4328 CMI PURE FLAVOR AURORA PRODUCTS, INC T. MARZETTI COMPANY Wenatchee, WA Leamington, ON, Canada Stratford, CT Columbus, OH Over the past 20-plus years, CMI has Pure Flavor is a year-round grower, ship- Aurora packages T. Marzetti Company is a leading manu- AISLE 4200 steadily grown into one of Washington per & marketer of greenhouse vegeta- AISLEonly 4300 the highest facturer of refrigerated salad dressings State’s largest apple, pear and cherry ship- bles. We continually strive to bring revo- quality and fresh- and dips. We also produce croutons per and grower and continues to be a lutionary ideas, such as Pure Flavor est All Natural under both the Marzetti and Chatham pioneer in new vari- Grillers™, Aurora Bites™, and Luna Sweets and Organic Village brands. More recently, we have eties, sustainability, Trio™ to consumers. dried fruits, nuts, introduced the very successful Simply creative packaging trail mixes, salad Dressed salad dressings and Otria Greek and growing tech- toppings, and granolas. Yogurt Veggie Dips. nologies.

Booth #4362 Booth #4426 Booth #4506 Booth #4516 CLEAR LAM PACKAGING, INC. GILLS ONIONS JOVY FRUIT ROLLS GLORIANN FARMS Elk Grove Village, IL Turlock, CA City of Industry, CA Tracy, CA Clear Lam develops and manufactures Gills Onions is a family owned and oper- Jovy Fruit Rolls are available in 10 deli- Prima Bella Produce is now GloriAnn flexible and rigid packaging films. We will AISLEated 4400 grower and processor of sliced, AISLEcious 4500 flavors. A family favorite since 1975, Farms! Our name has changed, but every- showcase its newest peel/reseal lidding diced, slivered and whole peeled yellow, with an SRP of $.50 to $.59, our products thing else is materials and will introduce the new red and sweet onions for retail and food- are highly pro- the same: we PrimaPak, a flexible, stackable, reclosable service applications. motable and still offer the package perfectly suited for sliced fruits great impulse finest Fresh and vegetables. items. Sweet Corn year round under the GloriAnn brand, backed by top-notch, personalized customer service from our third generation family-owned company.

Booth #4527 Booth #4532 PRODUCT PROTECTOR, LLC POTTER INC. Walnut Creek, CA Bryan, OH Finally, a fresh idea - the Product Protec- Potter Inc. is your tor is the only forklift attachment that fruit and gift bas- solves the product and pallet damage ket specialists. Let problem. A recent study by Dr. Marshall us help you customize your holiday and White found that the Product Protector everyday fruit basket programs. Our reduces product damage by 75-80% and unique basket and container designs doubles the life of any pallet. along with our coordinating hand-tied bows are a sure way to create excitement and boost sales.

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Please visit us at PMA Booth 1426, Hall D West Mexico.qxd:Layout 1 9/27/12 1:36 PM Page 1

SPOTLIGHT ON MEXICAN IMPORTS — PART II

Mexican Tomato Importers Make Appeal For Market Access

Tomatoes represent over $800 million FOB and 20 to 25 percent of the value of produce brought into Nogales. BY JODEAN ROBBINS

est Mexico has long played has struggled with various challenges Florida/U.S. tomato production has once again a crucial role in providing a throughout the years. “The tomato and raised its ornery head. This past June, the consistent supply of winter vegetable industry from Mexico has been in a Florida Tomato Exchange made a request to Wproduce to the United development process for close to 100 years the U.S. Department of Commerce to termi- States and Canada. “The now,”states Alejandro Canelos, owner/director nate the Tomato Suspension Agreement with West Mexico industry is very important to the of Apache Produce Imports LLC, located in Mexico. The 16-year-old agreement sets a U.S. market considering it basically supplies Nogales,AZ, and Chairman of the Board of the minimum price, determined by the Depart- North America during the winter and the Fresh Produce Association of the Americas ment of Commerce, under which Mexican springtime,”says Martin Ley, vice president of (FPAA). “There has been a number of chal- growers agree not to sell in the U.S. market. Del Campo Supreme in Nogales,AZ.“Particu- lenges over the years, but we overcome them The agreement has been renegotiated and larly in tomatoes during that time, one of every because the market continues to demand our renewed in 2002 and 2008. two tomatoes consumed comes from Mexico products. As long as U.S. consumers want our “To say the issue is complex would be a through the West Mexico borders.” products, I’m confident we’ll overcome what- grave understatement,” states Matt Mandel, “There are somewhere around 1,200 trucks ever obstacles are before us — be it political, vice president of sales and marketing for Rio a day passing through Nogales supplying U.S. regulatory or other.” Rico,AZ-based SunFed.“The basis of the issue and Canadian needs for fresh produce,”reports The ageless dispute over tomato anti- dates back to a dumping investigation initiated Brent Harrison, president of Al Harrison Co., dumping and a newly forming disagreement by Florida growers in 1996. They claimed in Nogales, AZ. “Mexican operations have over what should be labeled as greenhouse are Mexican producers were selling tomatoes in made tremendous investment, not just mone- being met head-on by all sides. “These chal- the fresh marketplace below the fair cost of tarily, but also in time and resources in lenges make people more aware of what is production. Before the investigation was production technology, certifications in food going on and how valuable a supplier Mexico completed, the Mexican growers agreed to safety, traceability and packaging. The West is,” says Alberto Maldonado, general manager enter into a suspension agreement with the Mexico grower really looks to the future of our of Apache Produce. Department of Commerce by which they industry and makes changes as needed.” would agree to certain terms, namely a floor While the industry has built a strong Tomato Complexities price under which they would not sell. The market in response to consumer demand, it The ongoing dispute over Mexican versus current issue stems from the same Florida

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grower group filing a petition for the current suspension agreement to be cancelled. They are doing so in order to file a new dumping lawsuit against the Mexican producers.” Needless to say, those in the West Mexican tomato industry are not pleased. “This agreement has successfully settled one of the largest bilateral trade disputes between our two countries,” says Lance Jungmeyer, president of the FPAA, headquartered in Nogales, AZ. “The petition to terminate does not make sense, because at the end of this year the agreement is due for a review. There are many ways to address any alleged concerns within the context of the current agreement. There is no need to terminate it.” “Areview of the fundamentals of the agreement is done every five years, and that Sunset Review is coming up this December,”explains Jaime Chamberlain, president of Nogales, AZ- based J-C Distributing Inc. “Florida and Mexico both have the opportunity to discuss what they don’t like about the agreement. The two other times we’ve had a Sunset Review, there were significant changes made to the agreement on which both parties agreed.”

Competition And Differences The renewed difficulty between the production areas may be partly due to better logistics and technology. “In general, Florida and West Mexico have been direct competitors in tomatoes for over 100 years,”remarks Jung- meyer.“Florida traditionally served the Eastern Seaboard and West Mexico served west of the Mississippi. Innovations in transportation and handling have put them in more direct competition as time has gone on.” “We have growing techniques that far surpass other areas and have invested heavily in technology,”says Canelos. “We’re leaders in what we’re doing.” “Seasonality in Florida is limited to their natural season, basically the winter season when they experience milder temperatures than the rest of the country,”explains Mandel. “In Mexico, heavy investments have been made in protected agriculture and the necessary infrastructure to support it due to a grower base that is increasingly educated and business- savvy. This has allowed Mexico to be able to produce year-round in its varied climates and geographic regions.” Mexican growers have been pushed to efficiency by technology and trade.“Developments have meant Mexico’s tomato industry now uses around 70 percent less water and has a cleaner product, overseen by third- to fifth-generation growers that are farmers for the long term,”says

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“When we insist on looking at the industry as country-of-origin, we build barriers. The reality of the produce industry as a whole is that we are intertwined. The success of Mexico is not Mexico’s success; it is the success of the tomato industry as a whole.” — Martin Ley, Del Campo Supreme

Eric Viramontes, CEO of the Mexican Associa- maturation and subject them to ethylene gas tion of Protected Horticulture (AMHPAC) for ripening. In regards to specific varieties,

based in Culiacan, Sinaloa, Mexico.“Addition- Florida claims there is no major difference PHOTO COURTESY OF CERTIFIED GREENHOUSE FARMERS ally, the United States has been very hard in its between its varieties and those from Mexico. demands on Mexico. But this resulted in some- Florida growers claim to grow a bevy of vari- Companies from the United States, including thing very positive for our industry. It’s forced eties and types of tomatoes. I cannot say this Floridian and Canadian companies, have us to become one of the best industries in the claim is completely unfounded, but if I have 1 driven the success in Mexico. Those actors, world today.” percent vine-ripes, 1 percent Heirlooms and 98 regardless of their country of origin, accom- The difference in varieties produced by percent gassed-green rounds, such a claim is a plished the work by providing consumers with Florida and Mexico is another contributor to bit disingenuous.” what they want.” the debate. SunFed’s Mandel states,“Mexico is “We need to talk about the industry in able to provide a vine-ripened tomato experi- A Bigger Perspective terms of the actors and not in terms of birth ence where the true flavor of the tomato can As with other globally sourced products, certificates,”continues Ley.“When we insist on be expressed because it is allowed to gain its the issue is more complex than a U.S. versus looking at the industry as country-of-origin, natural sugars during the maturation process. Mexico take. Del Campo’s Ley explains,“Ideal we build barriers. The reality of the produce This differs from Florida, where they pick the conditions have been found in Mexico by U.S., industry as a whole is that we are intertwined. majority of their tomato crops long before Canadian and some Mexican companies. The success of Mexico is not Mexico’s success;

OCTOBER 2012 •PRODUCEBUSINESS 117 SAGARPA.qxd:Ad 9/25/12 6:31 PM Page 1

ADVERTISEMENT MEET MÉXICO @ THE PMA

Mexico represents a wealth of opportunity for fresh produce trade and attendees at PMA’s Fresh Summit can see first-hand the wide variety of items available from Mexico. More than 130 quality suppliers from Mexi- co will be on hand at the Mexico Pavilion at PMA’s Fresh Summit Exposi- tion in Anaheim, CA.

Outstanding products from Mexico on display will include asparagus, berries, cactus leaves, coconuts, cucumbers, eggplant, grapes, guavas, mangos, papayas, peppers, pineapples plantains, and tomatoes, as well as many more. The Pavilion provides a convenient way for buyers to tour Mexico’s best offering.

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espite widespread success and growth of U.S. production couldn’t possibly meet the affect the distribution chain in the United D the tomato category in retail stores, a needs. Reinstating duties on Mexican toma- States. More than 1,000 U.S. companies are portion of the Florida tomato industry is toes will only lead to inefficiency in the sup- dedicated to distributing Mexican produce. attempting to negate the 16-year old Tomato ply chain and lack of reasonably priced prod- Allied U.S. businesses also include trans- Suspension Agreement in order to file a new uct for consumers. portation, suppliers, retailers, and compa- trade case, re-igniting a trade dispute that nei- nies that make pallets, as well as cartons, ther benefits the industry nor consumers. For 4. Restrictions on Mexican imports would fertilizers, and seed coming from the U.S. years, U.S. and Mexican producers (as well as result in less choice available for tomatoes. other countries) along with retailers have The market would see a reduced consumer 8. Estimates show the jobs generated by the worked to build and expand the tomato cate- selection of tomatoes and therefore fewer Mexican tomato industry in both countries gory for U.S. consumers – an achievement that tomatoes being bought – further affecting as exceeding 400,000 people. About 5 per- should continue for many solid reasons. the U.S. retail economy. cent of U.S. residents have jobs tied directly to Mexico which equates to 6 million jobs. 1. Collaboration among growing regions builds 5. Increased duties would mean consumers stable and successful markets in various would pay higher prices for the reduced 9. Trade interruption could hurt Florida’s econ- commodities. The growth and success of offerings of tomatoes on supermarket omy. Florida benefits from $7.58 billion in today’s tomato category is proof. shelves. two-way trade between Florida and Mexico, with more than $2 billion of that in exports 2. The United States Department of Commerce 6. Many U.S. jobs are dependent on Mexican from Florida to Mexico. has repeatedly confirmed the Tomato Sus- tomato trade. Informal studies suggest pension Agreement to be in the public inter- 12,000 jobs in the Nogales area come from 10. Working together instead of erecting barri- est because it brings stability to the market- produce and around 3,000 of these jobs are ers would elevate consumption and grow place. The Agreement has been renewed two related to the Mexican tomato trade. The the category even more. This approach, times and no violation of unfair pricing has Mexican trade supports high caliber employ- which the two countries can work towards ever been found. ment of U.S. citizens, not migrant workers. together, would not only improve market conditions but the well-being of U.S. and 3. The demand for tomatoes is so great that 7. Restriction of Mexican tomatoes would Mexican populations. SAGARPA P2.qxd:Ad 9/25/12 6:40 PM Page 1

Key Questions for Profiting from Mexican Melons

Melons represent a significant sales opportunity for retailers and represent around 2% of total produce sales. Mexico is a reliable and consistent supplier of melons and has exported melons to the United States for over 30 years. Understanding the answers to a few key questions will help better business in Mexican melons.

Q: Where are Mexican melons grown? Q: What are some of the best aspects of mel- been developed in conjunction with the U.S. Food While melons are grown throughout Mexico, the ons to promote? and Drug Administration and Mexican state and arid desert region and deep groundwater aquifers Great taste, health and diversity…melons are a federal food safety agencies. Additionally, Mexican of coastal Sonora create ideal growing conditions. healthy addition to any meal, whether breakfast, produce of any type must pass a wide variety of Production in Sonora is within half-a-day’s drive lunch, or used as a dessert. They can be cut into a inspections to enter the U.S. which ensures only from the U.S. border at Nogales thus reducing the variety of shapes, or served as a slice with the rind. the highest quality products reach retail shelves. complexity of the supply chain logistics for import- The variety of flesh color from different melons, ing into the U.S. Further south along the pacific which includes different shades of oranges, Q: What type of food safety certifications do coastal states, such as Colima and Guerrero, are greens, and yellows, provides excellent retail mar- Mexican melon growers have? other growing regions that produce winter crops keting opportunities. To be able to export cantaloupe melons to the for export. There is also some production in the U.S., all Mexican producers must adhere to a eastern part of the country. Most melons are Q: Should whole melons be promoted along- series of standards set by the Mexican federal grown open field, although there are always new side cut melons? agency charged with food safety (SENASICA) in technologies used to protect the plants, especially Yes! Whole melons are easy to handle and keep conjunction with the U.S. Food and Drug Adminis- from late winter freezes in the case of Sonora. at home. Cut melons, especially when combining tration. Approved Mexican cantaloupe growers for different varieties and taking advantage of the con- export to the U.S. can be found under the FDA Q: When are Mexican melons available in the trasting colors, make for an exciting promotional Import Alert 22-01. The vast majority of honeydew U.S.? Is there peak time for quality or flavor? item. Cut melons offer the consumer the option producers (and cantaloupe growers as well) Mexican melons potentially could be available in of quick and easy consumption, while whole mel- acquire third-party certification by entities recog- the U.S. year round, but the peak crops of Honey- ons can often be kept for a few days on the shelf nized in the U.S. such as Primus Labs or SCS, dew and Cantaloupe (originating in Sonora) occur at home thus offering the consumer flexibility on among others. from early October until mid December and then when they decide to enjoy the fruit. from mid April until early July. Due to the diversity Q: Do Mexican melon growers have traceabili- of growing regions in the state of Sonora, excellent Q: What is a good way to increase melon ty measures? quality melons can be found throughout these sales? Many producers have maintained internal trace- time periods. Increase melon sales by taking advantage of peak ability for years, both for use in the case of a production seasons from different growing potential recall as well as for internal assessment regions, thus ensuring only the freshest fruit is of product quality and value. PTI standards are offered to consumers. While a wide variety of U.S. welcomed by most producers as they understand growing areas dominate production in summer and value the concept of traceability throughout months, Fall and Spring production mostly origi- the supply chain. The culture of valuing traceability nates in Sonora which provides optimum condi- is well established within Mexican melon tions for growing melons in those seasons. exporters. Some producers in Sonora have been on the cutting edge of the industry, enacting item Q: What is the best answer a retailer can level traceability studies on honeydew melons. give a consumer concerned about food safety on melons? Melon production in Sonora occurs with extreme vigilance and emphasis on food safety. The growing conditions themselves -- warm, arid weather with deep-aquifer irrigation wells -- inhibit microbiological contamination. Field and packing shed standards have West Mexico.qxd:Layout 1 9/27/12 1:37 PM Page 4

“Government and industry should be thinking about the consumer.Historically,several times Florida has been wiped out and Mexico has supplied the whole market.A few years ago, both got hurt and between the two industries, they complemented each other,filling the market needs.” — Alberto Maldonado, Apache Produce

it is the success of the tomato industry as a consumer. Historically, several times Florida whole. It’s about everyone in the industry has been wiped out and Mexico has supplied figuring out how to serve the customer with the whole market. A few years ago, both got the tomato choices they want.” hurt and between the two industries, they Mexican industry leaders maintain the complemented each other, filling the market others on both sides of the border have need for both areas. “Many consumers prefer needs.” invested to build the tomato category into what the Mexican tomato because of flavor and Chamberlain of J-C Distributing asks, “If it is today,” emphasizes FPAA’s Jungmeyer. quality, as opposed to the gas-green tomatoes,” the hurricane that just came through would “The current U.S. demand for tomatoes is so says Apache’s Maldonado. “However, many have hit Florida, what would Subway or great that U.S. production alone couldn’t foodservice users and repackers use green SYSCO or Alliant do without being able to possibly meet the needs. The United States is tomatoes. There is demand for both.” quickly change to Mexico as a source? What the largest importer of Mexican tomatoes Weather is a major factor in the argument would prices be?” totaling $1.3 billion last year.” for ensuring multiple viable production A drastic reduction of market supply and sources. “Neither country can guarantee the Market Consequences higher retail pricing are assumed results public consistent production on account of the Regardless of the arguments, a new trade from significant restriction of Mexican weather,”Maldonado points out.“Government dispute would affect the tomato category. production. “What the Mexican tomato and industry should be thinking about the “Growers, shippers, wholesalers, buyers and industry offers the U.S. marketplace, above

120 PRODUCEBUSINESS• OCTOBER 2012 J-C Distributing.qxd:Ad 9/24/12 5:11 PM Page 1

J-C DISTRIBUTING INC. Fresh Fruits and Vegetables

CHAMBERLAIN FAMILY CONSISTENT QUALITY MEXICO'S

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We distribute a full line of vegetables and tomato products from our 90,000 sq. ft facility in Nogales, Arizona. We also offer In & Out Services during the Mexican grape season. Our sales associates are also committed to helping YOU with all your produce needs. Call our Sales Staff: Jaime Chamberlain, Andres Gonzalez, Rene Calixtro, or Juan Medina PHONE: 520-281-1234 • FAX: 520-281-0805 E-MAIL: [email protected] West Mexico.qxd:Layout 1 9/27/12 1:38 PM Page 5

A WORD FROM FLORIDA “ he action being sought by domestic producers across the United States, not just Florida, seeks to end a case that dates back to 1996 and which remains Tfocused on facts from the past (pricing in 1995-96 [based on] market condi-

Side Note tions in 1993-95) which don’t reflect market conditions in 2012. All types of tomatoes are grown in the United States, just as they are in Mexico. While producers in any country may take pride in the quality of what they produce, tomatoes from U.S. growers are of the highest quality. Growers of all types of tomatoes all across the U.S. — even in Arizona — support our effort. Agricultural Commissioners, Representatives and Senators and workers from across the country support letting the current facts guide future trade in tomatoes. U.S. producers simply want a chance to eliminate a suspended investigation that has ceased to have factual relevance to the current times and preserve their rights, as are available to all domestic agricultural and industrial producers.”

Reggie Brown Executive Vice President Florida Tomato Exchange Maitland, Florida

Editor’s Note: PRODUCE BUSINESS welcomes all opinions and will publish any letter on the subject of the Tomato Suspension Agreement. Please email your comments to: [email protected]

everything else, is a wide array of vine- $816 million FOB as registered for the trade of ripened tomato styles and packs,” says Mexican tomatoes in Nogales,AZ, in 2011 and SunFed’s Mandel.“It provides a multitude of representing 20 to 25 percent of the value of all SKUs for a retailer to carry; it provides produce brought into Nogales. “Terminating choice and flavor to the end consumer as the agreement would have a hugely negative well as thousands of U.S. jobs to move, sell impact in this country,” warns Jungmeyer. and distribute these tomatoes.” “Informal studies suggest 12,000 jobs in the “Without Mexican tomatoes, supermarket Nogales area come from produce, with around shelves would have far fewer SKUs to offer 3,000 of these jobs related to Mexican tomato consumers,” states Jungmeyer. “If there was a trade — high caliber employment since freeze in Florida, without Mexican tomatoes Nogales workers are U.S. citizens.” prices would go through the roof. In 1989, FPAA envisions consequences that would there was low production in West Mexico and affect companies in almost all U.S. states. Florida had a freeze. FOBs went to $50 and “These companies make boxes, sell seeds and stayed there for an extended period. In 2011, offer services in support of the importation there was a freeze in both areas. Prices briefly of fresh Mexican tomatoes,” continues went above $40. Retailers shied away from the FPAA’s Jungmeyer. “This trade action is category and sales stayed low the whole season. certain to threaten numerous U.S. jobs all High FOB prices are only good for the growers across the country.” that have tomatoes. They are not good for The FPAA estimates 350,000 overall jobs consumers or retailers.” result from the protected agriculture industry “Restricting Mexican imports would with nearly 50 percent of those in the tomato certainly result in consumers and buyers industry. FPAA further estimates five percent paying higher prices for a reduced offering of of U.S. residents have jobs tied directly to tomatoes,” advises Ley of Del Campo. “Our Mexico (equating to six million jobs). “Iron- industry should be looking for ways to increase ically, the trade interruption could end up affordable quality products to U.S. consumers, hurting Florida’s economy as well,” states not decrease the offering and increase price. Jungmeyer. “Statistics show Florida benefits The effect of a new dispute would lead to a from $7.58 billion in two-way trade between meager and pricey selection — the exact oppo- Florida and Mexico, with more than $2 site of what benefits consumers and our billion of that in exports from Florida to industry in general.” Mexico. That ‘free’ trade could be jeopardized by any new trade dispute erected by the Larger Economic Impact United States.” FPAA reports a value of approximately “In the event the agreement is negated, it

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OCTOBER 2012 •PRODUCEBUSINESS 123 West Mexico.qxd:Layout 1 9/27/12 1:38 PM Page 6

would be to the benefit of a very small few and themselves in a court of law.” for protectionist politics.” the detriment of every tomato consumer in “Wecannot afford to get into this argument “What is most clear is that the economies of the United States,” says SunFed’s Mandel. and embark on a major trade war,” states Mexico and the U.S. become more intertwined “Florida would gain at the expense of a large Chamberlain. “We have the opportunity to each day,” relates Jungmeyer. “Mexican pork number of U.S. distributors, who would be have a trillion dollar trade relationship with a producers have suffered because U.S. pork irreparably harmed financially. Florida would country that has seen a 4.5 percent GDP producers are more efficient and able to increase gain at the expense of a drastic reduction in growth in the last year alone. We don’t want their exports to Mexico. Similarly, Mexican exports from Mexico.” Mexico to retaliate on our pork or electronics tomato growers have found efficiencies.” or apples. This is about more than just toma- “Especially in these economic times, it’s Hurting A Relationship toes. Working together, our two countries fantastic to think we have one of our best Proponents of the agreement also fear a should be a symbol of economic freedom.” trading partners right next to us,” states J- larger trade war. “Mexico would be unduly The West Mexico industry looks to a future C’s Chamberlain. “We don’t need to go injured as tomatoes represent the No.1 agri- of free trade. “I appreciate our domestic halfway across the world to sell $460 billion cultural export to the U.S. from Mexico,” says growers and the hard work they put in to worth of products. We have that market Mandel.“It is a very large industry employing produce their products,” says Mandel. right here, and it is fundamentally several hundred thousands of individuals. “However, this cannot be painted as an programmed to want American products. Mexican exporters would be forced to defend example of anything other than Florida asking We shouldn’t jeopardize it.” pb

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MERCHANDISING REVIEW Apples: 15 Thoughts To Help In A Tough Year

Despite weather woes, apple growers/shippers around the country remain positive for future seasons. BY BOB JOHNSON

Industry experts recommend merchandising an average of eight to 10 SKUs of apples to make the most of the PHOTO COURTESY OF C.M. HOLTZINGER FRUIT CO. LLC category.

roduce is always at the mercy of unique apple crop not just nationwide, but grown market will bounce back,”she says. the weather, and the 2012 apple globally, as Europe has had to contend with For 2012, most of the slack will be picked crop endured a perfect storm, or similar supply and demand issues. There’s a up by apples from other areas of the country. Prather, series of storms. First came massive demand for apples with an historically “We’ve got a pretty good crop, about normal in the late April freeze that devastated low supply. We haven’t had a nationwide crop timing,”reports Jim P.Mertz, vice chairman of the crop in Michigan, western New York and this small since 1986.” Symms Fruit Ranch, Inc., in Caldwell, ID. much of Canada. Chuck Sinks, CEO/president Just as it was a difficult year to grow apples, “We’ve had a few weeks of warm weather and of sales and marketing at Sage Fruit Co. LLC, in 2012 will be a challenging year to merchandise the cullage is going to be minimal.” Yakima, WA, acknowledges, “Crop growing them. Industry insiders offer 15 thoughts to There will even be ample supply from some conditions in any given year can greatly affect consider in meeting that challenge: apple growing areas in the Northeast and East the availability of a particular variety. Case in that were largely spared from freeze damage. point, Michigan has lost the vast majority of 1. They Will Be Back According to Karin Rodriguez, executive its crop due to a freeze in the spring.” Apple growers who suffered freeze losses in director of Harrisburg-based Pennsylvania Then, three weeks into July, hailstorms 2012 have spent decades building and serving Apple Marketing,“It’s looking pretty good.We destroyed or damaged millions of boxes of loyal local markets, and these growers will be fared better than the other Eastern states.We’re apples across Washington.“There’s probably up back with their prized local varieties in 2013. looking for an average-sized crop. We are to 20 million boxes of apples affected by hail this “The apple growers in Michigan, NewYork and finding more demand because of the problems year,” estimates Andy Tudor, director of Ontario have decades-long relationships with in New York and Michigan, so I do think marketing at Yakima, WA-based FirstFruits their customers,”remarks Queen.“Wesee them pricing will be higher,”she says. Marketing of Washington,LLC.“Some of it was coming back next year. They should have a Some Eastern shippers have a cushion destroyed, but some just has light hail damage, bumper crop because their trees will be ready.” because they source apples from a number of which will be picked and put in the warehouse.” Fortunately, the freeze that destroyed the local areas.“There’s a lot of question about the The weather damage to the 2012 apple crop fruit did not damage the trees, so growers size or volume of the crop, but Pennsylvania even extends across the Atlantic to orchards in should be able to rebound with a strong crop in will not be down,” guarantees Fred Hess, Europe, adding to a supply problem of historic 2013. Diane Smith, executive director of the owner/president of Hess Bros. Fruit Co., in proportions. Loren Queen, marketing and Lansing-based Michigan Apple Commission Leola, PA.“Since everybody is saying New York communications manager at Domex Super- (MAC), confirms, “We should have a will be a half a crop, we will be affected by that Fresh Growers, LLC, headquartered in Yakima, wonderful crop in 2013. Retailers understand as we pack a lot of apples from that area. But WA, acknowledges, “This year we’ve had a this could happen to anybody. Our locally on the other hand, we get apples from Virginia,

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MERCHANDISING REVIEW

too, and they should have a good crop.” apples as they become available next year.“We says Maria Brous, director of media and Indeed, eastern and midwestern retailers have Virginia to New York to keep us supplied, community relations at Publix,in Lakeland,FL. will lean heavily on apples from Washington to and the freight is more economical than The earliest wholesale market prices take up the slack.“At this point I‘m told the East bringing them all the way from the West Coast,” confirmed that apples are likely to be a little Coast apple crop will be significantly down. If Patterson says. more expensive this year. “With the overall necessary, we will bring in more apples from With a short supply arriving from the supply down, we’re seeing some stronger Washington,” says Mike Patterson, director of eastern apple producing regions, 2012 might opening prices,” confirms Paul Newman, produce operations at Magruder’s, a family- be the year to feature club varieties until the organic /category manager for ColumbiaValley owned independent chain with six markets local favorites return in 2013. Suzanne Wolter, Fruit, LLC., headquartered in Union Gap, WA. based in Rockville, Maryland. director of marketing at Rainier Fruit Co., in Don Roper, vice president for sales and Other Eastern produce retailers are also Selah,WA, states,“The apple category is unique marketing at Honey Bear Tree Fruit Co., LLC., already looking to the West for apples this year. to bulk produce as it offers multiple new vari- located in Elgin, MN, notes,“Retailers are going “We will certainly not have the supply we eties to consumers. Retailers are now featuring to have to move their price points up to $1.69, expected from New York,” says Jeff Cady, these limited volume varieties in store and $1.89 or $1.99 a pound, which, in turn, will produce/floral category manager at Tops through print ads with great success.” slow demand.” Friendly Markets, based in Buffalo, NY. “We Even at higher than usual prices, however, will have to lean on apples from the West, from 2. Price ‘em High(er) apples will still be one of the bargains of the Washington State in particular.” The supply of apples in 2012 will be down produce department.“Compared to other fruits Despite the difficulties with this year’s crop, precipitously, as a result of the weather, but and vegetables, apples are still at a very good there is a loyal customer base that will return the demand for apples will be up a little, as a price point, especially when you consider the next year to their favorite New York and result of population increases. As a result of health benefits,”contends Hess of Hess Bros. Michigan varieties. “We will go back to New this imbalance between supply and demand, York apples next year,”says Cady.“This is apple the prices paid by retailers figure to be higher 3. ‘Hail Quality’ Bargains country; last year we carried only New York this year. Will Be Available apples in the month of October.Wedid carry a “Weexpect there to be a higher premium for The estimate for the Washington crop is couple varieties from Washington that aren’t apples as the Michigan crop is gone, New York 108 to 109 million boxes, give or take four or grown here, but we did not put them up front.” state lost approximately 50 percent of their crop five million, and Domex’s Queen thinks the Magruder’s, too, will return to Eastern and Washington state lost 10 percent of theirs,” final number will be toward the high end of

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MERCHANDISING REVIEW

that range. Hard Times For A Comfort Fruit The impact of the hail varied greatly from region to region and even orchard to orchard. This has been one of the toughest weather years ever for apple growers in the “Our crop is looking excellent,” confirms United States, Canada and Mexico. In this summer and, though they were not Sandra Steineke, director of merchandising at Michigan, an early heat wave caused the as catastrophic as the freeze, they will C.M. Holtzinger Fruit Co. LLC, in Yakima WA. trees to bloom early, and then a fierce have a significant impact on the crop from We lost a tiny amount, but nothing to write spring frost destroyed the flowers before the nation’s leading apple producer. “On home about.” they set fruit. The result was the greatest July 20, we had hailstorms across the Other Washington shippers also report that apple crop loss state wide in nearly 70 State of Washington that did a fair hail damage was inconsistent throughout the years. “We won’t be doing much in terms amount of damage to the apples,” state. “We caught some hail at some of the of merchandising apples this year,” describes Loren Queen, marketing and ranches,and missed it at others,”Newman says. admits Diane Smith, executive director of communications manager at Domex “With the early varieties,we can have the pickers the Michigan Apple Commission, Lansing, SuperFresh Growers, in Yakima, WA. “It sort out the hail-damaged from the rest. With MI. “We’re looking at 10 percent of the was uneven — some orchards had apples the later varieties there won’t be enough pickers normal crop if we’re lucky. The apple crop pelted with golf ball-sized hail — while to sort, but the further you get away from the as a whole will be down this year; it’s not other orchards weren’t even hit by smaller hail the longer the fruit will have to rebound.” just Michigan.” hail. Until we begin to harvest and pack, No one will know the extent of the damage The damage from that frost extended we won’t know what we’ve got.” until the apples have been picked and sorted, beyond Michigan. The cold snap of April “I think it will be a manageable year; but the amount of hail damaged fruit will be in 27 to April 29 caused 90 percent crop it’s not a panic situation,” says Bob Mast, the millions of boxes. According to Newman, losses not just in Michigan, but also in vice president for marketing and food “The figure everyone is throwing out is 15 Western New York and Ontario. St. Cather- safety at CMI Corporation, located in percent damage. Some of that will be lost, but ines-based Ontario Apple Growers Wenatchee, WA. “The volume out of the the question is whether retailers will consider association chair, Brian Gilroy, estimated Northwest is good this year, but the rest hail-damaged fruit. Some will carry 5-lb. in August that the apple crop loss in of North America is down.” pound bags, or even a few 8-lb. bags.” Ontario this year will be 88 percent. According to Mast, the latest estimates These large bags of hail-damaged fruit will “When you take those regions out of are the Midwest crop is down 70 to 90 give retailers an opportunity to offer their the mix, and add the hail problems in percent, and the East will be down 31 customers apple bargains.“You’ll get five pounds Washington, we’re looking at an overall percent, but the West should be up 6 for the price of three,”says FristFruits’ Tudor. reduction in apples between 20 and 35 percent. The total volume from the United We are in relatively uncharted waters, and percent,” says Don Roper, vice president States will be down an estimated 14 it remains to be seen how these apples will do for sales and marketing at Honey Bear percent from last year, but the harvest in this market. Retailers who go with the Tree Fruit, located in Elgin, MN. from Canada will be down 30 percent, discount bags of hail-damaged fruit still need There were hailstorms in Washington and from Mexico down 50 percent. pb to be vigilant about keeping their apple displays looking good. “Rotation is the key to success,” work with apple shippers to get the kind and display apples and pears side by side: With says Jim Allen, president of the Fishers-based size apple packages that will work best in a apples in short supply the pears may pick up New York Apple Association (NYAA). particular market. “As a shipper you’ve got to some of the slack. Acording to Bob Mast, vice have a relationship with your customers,” president for marketing and food safety at CMI 4. Bags Can Be Bargains asserts Symms Mertz. “You’ve got to have that Corp. headquartered in Wenatchee,WA,“Pears The conventional mix between bagged and relationship, because what works for some are going to be strong this year; and it might be bulk apples could be turned on its head a bit people won’t work for others. When they ask a good opportunity to promote them. The pear this year. According to Domex’s Queen, for a certain container, or a certain kind of crop is down a little from last year, but it is up “Supply problems and the economic malaise package, we say ‘sure.’” from the five-year average.” will combine to make this a big year for bagged apples. Michigan and New York are tradition- 5. Apples and Pears, Together Now More 6. Honeycrisp Is Still On the Rise ally strong in bagged apples, so you’re going to than Ever Honeycrisp continues to enjoy an extraor- see more bags out of Washington than usual. Apples and pears are always a natural to dinary increase in popularity, and growers are The bag deals will be marginally less per pound merchandise together, as pears can serve as a still working to catch up with the demand. than the bulk deals,”he says. color break between varieties of apples that are “There’s certainly going to be more Honeycrisp Others agree that bags, particularly fairly of similar color. Research has also shown that available this year — both from our company large bags, will be important in this year’s apple sales of both apples and pears increase signifi- and from the industry as a whole,” remarks merchandising.“There will be lots of opportu- cantly when displayed together. FirstFruits Tudor.“The supply has been ending nity for retailing 5-lb.bags of apples this season,” “Use pears as a color break among apple in January, but it will extend deeper into the agrees Roger Pepperl, marketing director at varieties of the same general color,” suggests spring this year.” Stemilt Growers Inc., LLC., in Wenatchee, WA. Queen. “When you promote apples and pears Even in the relatively arid orchards of “Promoting these items in a tri-wall bin makes together,you get a seven percent increase in the Idaho, Mertz says, “We grow some Honey- for a great in-and-out promotion.” sales of each,”he reports. crisp, but we’re in the desert and they need a It is more important than ever this year to And this year there is one more reason to little more water.”

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MERCHANDISING REVIEW

“Wewill certainly not have the supply we crisp,”Brous says. There are as many as six varieties that could expected from New York. We will have to lean be considered apple staples, and should prob- on apples from the West, from Washington State ably be found in the section no matter where the store is located. in particular....We will go back to New York “Red Delicious is still the most wanted apples next year. This is apple country; last year variety, but the market share is half what it used to be. The top five are Red Delicious, we carried only New York apples in the month Golden Delicious, Granny Smith, Gala and of October.” Fuji,”Mertz says. — Jeff Cady, Tops Friendly Markets Add Honeycrisp to the list of staples and you’ve got six varieties that account for around Honeycrisp is still on the rise, and has Apples may begin in late summer, but they 80 percent of all apple sales. become the fastest growing apple variety ever.“I are among a handful of fruits that are available “The number of varieties you should carry see Honeycrisp popularity having started in the from domestic sources year-round.“While not depends on the department size and volume. Midwest, but it’s probably the fastest growing all varieties are available year round, certainly However 8 to 10 is a ballpark number. You apple because it’s such a good apple,”remarks the apple category van be maintained year- increase SKU count by also selling multiple Honeybear’s Roper. “There are still areas that round,”says NYAA’s Allen. ways. Example: bulk Gala, bagged Gala and haven’t had enough supply, but this will be the It is advisable to develop a plan-o-gram to organic Gala. You end up with 18 to 25 SKUs,” quickest apple to 20 million cases ever.” assist in always featuring a number of apple Pepperl says. “Timing and item selection are varieties when they are at their peak. the most important things to consider in 7. Beyond Honeycrisp “Apples are available all year, but not all merchandising apples. Don’t carry too many The extraordinary success of Honeycrisp has varieties,” says Stemilt’s Pepperl. “Red and items at one time. Sell and promote items hard inspired breeders to search for the next big thing Golden Delicious and Granny Smith are avail- when they are at their best. Examples are in apples.“We’re trying to find the new Honey- able year-round, Gala/Fuji are available most Honeycrisp in fall and winter; Pink lady in crisp. We’ve got a few varieties in the ground, months, and others are seasonal, such as winter, spring and summer.” but they’re still numbered experimental vari- Honeycrisp, Piñata and Pink Lady.” The major varieties are best combined with eties,”says Newman of Columbia Valley. The secret is that shippers have learned to a number of additional rotating varieties. The next new important apple varieties maintain peak flavor in many apple varieties “Store size is the major factor in the number could be two new Honeycrisp relatives that will when they are kept in storage for months. of apple varieties a retailer carries. A recom- extend the harvest season and, more impor- “With controlled Atmosphere, apples can be mended mix would be conventional varieties tant, greatly extend the time the fruit can stored and kept fresh year-round on particular (Red Delicious, Golden Delicious and Granny maintain peak flavor in storage. Roper details, varieties,”notes Sage’s Sinks. Smith) to allow for color breaks and a few of “We have two new apples coming out this fall. the premium apples (Gala, Fuji, Pink Lady) to The first comes before Honeycrisp; it’s an early 9. Know Your Varieties service the connoisseur and a larger per pound September harvest. Our other new one is a An important merchandising decision is ring,”Steineke says. mid-October harvest. how many apple varities to carry, and which Honeycrisp has a flaw that causes flavor to ones. 10. Regions Matter decline in storage, and the latter of these two “Carry as many as you can profitably sell, In filling out the apple menu beyond the Big new varieties will go a long ways toward and delight your customers,” Allen correcting that flaw. “What’s probably more says. important than the harvest date is the mix of You do not want Brix and starch,”explains Roper.“When Honey- customers looking elsewhere crisp is harvested,the Brix is at its peak,but there for a favored variety they is little starch. As you put that apple in storage, hoped to find in your produce there are no starches that turn to sugar.It’sflavor department. profile really wanes. Toward the end of “Carry as many varieties as December and into January, it fades in flavor. It possible in your rack space. is still crisp,but it has less flavor.Our second new Customers want as much variety has high Brix and high starch. It reaches variety as is available, give them its peak flavor from December through March.” choices so they don’t have to go to your competitor to find some- 8. Apples: The Year-Round Fruit thing else,”Sinks advises. The new apple season begins just in time for There are a number of staple back-to-school promotions. Sage’s Sink points varieties that should probably be out, “Apples are available in promotable in the apple section in every region volume in late August or early September on in the country. PHOTO COURESTY OF STEMILT GROWERS LLC particular varieties, even though full availability “Regardless of region, apple favorites will not be until late October.” include Gala, Fuji, Red Delicious and Honey-

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MERCHANDISING REVIEW

“Creating the connection between consumers regions — the local source and Washington,” Stemilt’s Pepperl says. “Local, of course, and the growers, Holtzinger is offering a Yakima matters. In Washington, we focus on the Nation reusable apple bag. The apples, grown on family-farmed aspect as well as our great locale to promote our crop to other regions. It’s a the land of the Yakima Indians, tell the‘grower great way for retailers to show consumers story’ through the reusable bag and point of where their fruit is coming from and who is growing it. They are getting apples from the purchase with a QR code for consumers who are best locale in the world by growers who have a interested in learning more about their grower.” passion for what they do.” — Sandra Steineke, C.M. Holtzinger Fruit Co., LLC In apples, localism corresponds to preference for particular varieties that usually cannot 5, or Big 6 if you include Honeycrisp, regional 11. Buy (And Sell) Local be found outside of the area. Sinks asserts, taste preferences matter. Each region of the Many retailers will not be able to find “Region of origin matters. Customers are more country has its own favorite varieties, and its enough locally grown apples this stormy year, informed than ever now, with all the different own preferred flavor profile. Queen details, but the importance of offering locally grown aspects of social media available. Let them “The West likes sweet apples like Fuji and Gala. apples remains a long-term trend. know your apples come from Washington The Midwest likes tart, sweet apples like “Since homegrown and regionally correct State. Use all three main growing regions, as Honeycrisp, Braeburn and Jonagold. The is such a marketing tool, retailers should make they all carry varieties that are not available in Northeast likes tart apples like McIntosh and sure they take advantage of the trend,”advises the others,”he advises.“For example make sure Granny Smith.” NYAA’s Allen. “Additionally, because some to vary Michigan Jonathons, New York Even as Honeycrisp has become the varieties are regional, retailers should source Empires, and Washington Sonyas. Local is good newest apple variety to go national, these form many areas. Promoting home-grown as well, and if a particular region has a good regional preferences have remained stable. New York State apples is a win-win for both local supply,use it and let your customers know “People are always looking for more Honey- retailers and consumers.” you are promoting local grown.” crisp — it’s the new kid on the block — but Apple shippers from Washington advise A typical strategy is to combine local the regional flavor profiles have stayed about using locally grown apples in addition to Wash- orchards with the State of Washington to build the same,”Queen says. ington apples.“Retailers should usually use two a year-round apple program. “Depending on

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store location, retailers should pull from the consumers and the growers, Holtzinger is regions necessary to ensure a year-round offering a Yakima Nation reusable apple bag. supply of apples to their customers,” suggests The apples, grown on the land of the Yakima Holtzinger’s Steineke. “Many retailers offer Indians, tell the ‘grower story’ through the local options while in season and then look to reusable bag and point of purchase with a QR Washington and then international shippers code for consumers who are interested in for their off-season sales,”Steineke says. learning more about their grower.” Washington is the one locality that carries weight pretty much everywhere in the country. 12. Fuel Up To Play 60 “While the ‘buy local’ movement still has legs Apples, and apple promotions, can play an with an emotional connection between important role in the move to promote healthy consumers and growers, consumers are looking eating and regular exercise as a way to combat to purchase apples year-round, which is not childhood obesity. A major initiative with this always an option with their local orchards,” goal in mind has already become widespread PHOTO COURTESY OF SAGE FRUIT FRUIT CO. LLC explains Steineke. “Consumers are also in schools the past few years, and is about to waite, director of marketing at Chelan Fresh purchasing USA products to support their move into retail produce sections. Marketing, Chelan, WA.“The program itself is country and as a reaction to food safety “The National Football League Fuel Up to reaching 73,000 schools targeting 36 million concerns. Creating the connection between Play 60 program is a hit,” says Terry Braith- kids.We’re taking the program to retailers now that it’s been in the schools a few years.” The program will promote three produce items particularly suited for inclusion in kids’ lunches. “We’re targeting carrots, grapes and moving into apples now,” details Braithwaite. “We already have four shippers on board. It’s about eating healthy and getting 60 minutes of exercise a day.” According to FirstFruits’ Tudor, the four shippers in the Fuel Up To Play 60 are Chelan Fresh, FirstFruits Marketing, Rainer Fruit Co. and Borden’s. There will be a promotion in October, and a second in January. But all retailers can benefit from promoting the health benefits of apples. “USDA dietary guidelines promoting the ‘half your plate’ message,alongwithMichelleObama’sLet’sMove campaign, present unique opportunities for apples and the entire produce department, due to the emphasis on increased fruit and vegetable consumption,” remarks Rainier’s Wolter. “Furthermore, consumers are increasingly reaching for ‘functional foods,’ supporting industry promotion of the health benefits associ- atedwithapples.Ina2010U.S.AppleAssociation consumer survey,consumers rated apples as one of the most healthful fruits. Once the survey disclosedthatscientificevidencesupportsvarious health claims and statements, the majority of survey participantssaidtheywouldpurchaseand serve apples more frequently.” Apples are not only healthy, they are also extremely convenient. “In addition to health benefits, consumers are looking for convenience, and apples fit that niche — just wash and eat,” says Wolter. “They’re perfectly portable, come in a variety of flavor profiles and provide multiple health benefits.”

13. Consider Fresh-Cut There is a new and growing market for

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“Consumer information that provides 80/88, in the same rack set, as well as having a two-tier program such as 80/88 tray packs and shoppers with reasons to purchase apples versus small fruit in tote bags, as the PLU break is on alternative fruits and snacks is important in the 100 sizes.” The price point for apples will be higher this driving purchase frequency. In addition, creating year, but the discounts for effective promotion an optimal merchandising display for apples, will be about the same. “We will promote, but we have to be more creative about it,”says Cady while at the same time providing POS materials from Tops Markets. to educate/remind shoppers on the many uses for Every October Magruder’s has a two-week “Apple Fest” promotion. “We have as many the different varieties of apples, is essential to varieties as possible. I’m hoping everything will increasing sales.” be fine this year,”Patterson says. It makes sense to plan the apple promotion — Suzanne Wolter, Rainier Fruit Co. price points in advance.“Retailers need to have fresh-cut apple products, because they meet the of the organic offerings in the particular a promotion plan in place they can live with demand for healthy and convenient foods. market. It is advisable in either case to keep throughout the season,” asserts Domex’s “Prepared apple sales are on the rise after a these two sections fairly close to each other.“As Queen. “If Gala apples are $1.99 a pound, slight recession-related decline,” reports Tony a consumer, I want to see the organic section what’s the appropropriate reduction to get Freytag, managing member and marketing fairly close to the conventional apples and them moving? Usually it’s around 30 percent, manager at Crunch Pak, LLC., headquartered pears,” relates Newman. “Plus, some retailers but get those plans in place.” in Cashmere, WA. “We’ve seen a 25 percent will run a special on one variety in organic, like To be successful the promotion needs an category dollar increase in the past five years, Fuji, and that needs to be visible to shoppers eye-catching display, in addition to a good according to Nielsen Perishable Groups Fresh not typicaly looking to buy organic.” price.“In a category that’s been around forever, Facts. People want healthy choices that fit their visual merchandising could play a major role on-the-go lifestyle.” 15. Keep On Promoting in increasing apples sales for retailers,”contends Crunch Pak’s family of brands includes Even in a year of tough supply and tougher Holtzinger’s Steineke. “Combining eye- Crunch Pak with Disney and Crunch Pak prices, apples are such a central part of the catching visual merchandising in packaging Organics. “We choose varieties based on taste produce department that it is important to designed to increase the ring at the register can and pressure, so we slice mostly Pink Lady and maintain a promotion program. “We plan to add up. Holtzinger’s new Veteran’s Honor box Galas for our sweet apples products, and promote apples this year; however, due to the offers a graphically compelling display and a 5- Granny Smiths for our green apple products,” reduced crops, we may not as aggressively lb. ring at the counter,”she details. Freytag details. promote,”says Brous from Publix. Other shippers agree that eye appeal is The firm is launching a new line of sliced In some areas of the country, apple promo- essential to successful promotion. “In-store apples infused with the flavors of other fruits tions are an annual celebration of the local marketing strategies should focus on capturing in three flavors: Peach/mango, grape and straw- harvest. “Usually promotions are pretty heavy the attention of consumers to initiate berry-vanilla cream. The Flavorz line made its when we have apples from Minnesota,” says purchase,” says Rainer’s Wolter. “Consumer debut in May, but national rollout is in late Bert Galarza, produce manager at Hugo’s information that provides shoppers with August, just in time for back-to-school; the Family Marketplace, a 9-unit independent reasons to purchase apples versus alternative suggested retail price is $3.99 to $4.29. chain based in Grand Forks, ND.“Wehave bins fruits and snacks is important in driving “We see more and more retailers putting in of Honeycrisp. Once in a while we’ll do promo- purchase frequency. In addition, creating an a snacking section, mainly to call attention to tions of McIntosh. That’s usually what I see optimal merchandising display for apples, the assortment and product offered,”remarks from Minnesota.” while at the same time providing POS mate- Freytag. “The more a destination category is According to Rodriguez from Pennsylvania rials to educate/remind shoppers on the many created, the stronger the appeal. It’s important Apple Marketing,“Consumers are always inter- uses for the different varieties of apples, is to maintain an assortment and watch for out ested in apples. With the early crop it makes essential to increasing sales.” of stocks. This is critical: You can’t sell it if you sense to promote, even if prices are higher.” The time for eye-catching apple promo- don’t own it,”he asserts. While supplies will be shorter this year,there tions is the weeks and months when the will be enough apples to promote. CMI’s Mast harvest rolls in.“Apple household penetration 14. Organic Apples Are Here To Stay confirms this, adding,“The promotions simply is highest during peak apple season, the An older trend is the continuing popularity may not be as aggressive as they have been.” fourth and first quarters, at more than 40 of organic apples. “The organic market Suppliers suggest developing a promotion percent,” Wolter details. “Obviously, apples continues to grow,”confirms ColumbiaValley’s program in advance.“Establish a program and are on consumers’ minds. However, even at Newman. “You’re seeing a lot of conventional stick with it, when the crop allows,” advises peak season, many households are not retailers open up space for organic apples. It’s a Sage’s Sinks. “Unless crop conditions are purchasing apples, indicating significant mainstay that’s gone beyond being a fad.” unstable, it is best to stay on a particular size, opportunities to increase penetration The decision of whether to display organic like 80/88, and quality range, like premium throughout the year. It’s important to capture apples with the other apples, or with the other number 1, when possible. It is okay to carry consumers’ attention with promotions and organic produce, depends on the importance larger sizes, like 56/64, and small sizes, like displays to encourage trial.” pb

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DETROIT REGIONAL MARKET PROFILE Spotlight On Detroit

Despite its economic hardships, the Detroit region is known for independent retailers that cater to its diverse population. BY LISA WHITE

ith the recent spring freeze and summer droughts, Detroit’s Eastern Market, which opened in 1891, is located those working in Detroit’s produce industry have about 10 miles north of its terminal market. Open to the public on had their fair share of challenges. Yet, from a retail Saturdays, this six-block operation has more than 250 vendors, and foodservice perspective, Detroit is experi- including area farmers. The Eastern Market has undergone an encing a resurgence. There are currently about 84 expansion recently and continues to evolve as one of the area’s Windependent markets in the inner city. “Also, more than 50 restau- primary retail destinations. rants have opened in the area over the last year,” says Dominic Recently, there has been a focus on expanding produce produc- Russo, a buyer and sales representative for Rocky Produce, a tion in Detroit via the city’s Detroit Market Garden Project, which wholesaler in the city. “There have been 10,000 new jobs created will showcase growing methods and business models related to in the past year or two, and hundreds of new residents are moving small-scale specialty crop production. Also, new vertical hydro- into the city. We think this is a trend that will continue. Detroit is ponic and aeroponic systems are being looked at as a way to on its way back.” repurpose abandoned and vacant industrial buildings. Surprisingly, after California, Michigan is the second most agri- culturally diverse state in the country. The Detroit area is 6,657 Overcoming Challenges square miles and consists of 10 counties as well as 275 cities, Although the weather issues in the Midwest have been chal- villages and townships. In 2010, its population totaled more than lenging, Michigan farmers have continued to make a vital impact 5.3 million, and retail sales totaled almost $75 million. in the state’s produce industry. The region’s wholesalers have Serviced by two produce markets, Detroit has always been a hot always strived to be supportive of these businesses. “What these spot for fruits and vegetables. Created in 1929, The Detroit Terminal farmers do in the produce segment is substantial, and we try to be Market consists of two long buildings constructed in an ‘H’ forma- a part of that,” Russo says. “We do what we can as produce profes- tion and connected by a bridge. Originally designed around rail sionals to create and maintain value.” lines, its eight vendors are now mostly serviced by trucks. It hasn’t been easy. Due to the extreme weather this year, most

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of the Michigan treefruit has been virtually which has impacted profit margins. “The fundamental things,” Russo says. “It takes a wiped out. “With the warm early spring competition is stiff, but it makes us all tough economy to recognize that.” and freezing temperatures in late spring, no better,” Russo says. “Our customers have fruit came,” Russo says. “To top it off, most become more creative and demanding. As Retailers And Restaurants of the summer we’ve had 90-plus degree a result, our profit margins aren’t easy to With Detroit’s inner city population weather, no rain and drought issues. Many come by. But as long as we can keep repo- dwindling significantly over the years and produce items have suffered.” sitioning ourselves for new opportunities, the public transportation system lacking, Ben. B. Schwartz, a Detroit wholesaler, we can handle the changes.” foodservice and retail businesses have was prepared for the weather-related issues. Companies like Rocky Produce rely struggled. Lately, however, those doing “We know what’s going to happen when heavily on relationships with buyers, ship- business in the city have reported growing growing regions are having trouble, pers and growers, especially in more opportunity. “Between 2007 and 2008 was whether it’s southern peaches or regional challenging times. “These are generic, but rough for restaurants, but now these busi- apples,” says Nate Stone, general manager and chief operating officer of Ben B. Schwartz. “Sometimes the changes are what we have to do to go along with what has already happened or what will happen as a result. We generally have a great year in southern peaches, but it wasn’t that great this year. We also typically have a great year with Michigan apples and blueberries. We had as good a year as we could, but it was limited by availability.” The fruits and vegetables that were available cost more than normal. Even with the weather and production issues, Rocky Produce has had a successful year in fruit sales, particularly with treefruit and grapes from California. Much of the increased interest in produce can be attributed to the growing focus on healthier eating. “No matter the age group, everyone is eating more produce,” Stone says. “People have become smarter, even if it means adding lettuce and tomato to hamburgers. Everyone knows eating more produce is the way to go. The more produce you eat, the healthier you are.” Although the organic segment has been in the spotlight, the category is not a big seller in the Detroit region. “Yes, the organic segment is still growing, but the numbers are insignificant in terms of everyday business when looking at the big picture,” Stone says. “High-end items used to be big, but discretionary spending is down. Ten years ago, we could put up a fancy pack and people were willing to pay for it. Now, it’s more back to basics. There is less demand for the more extravagant products.” The federal initiative touting healthier products in schools also has had a positive effect on Detroit’s produce wholesalers. “If we can educate and inform people about what it means to eat healthier, it can make a difference,” Rocky Produce’s Russo says. Detroit wholesalers are still contending with competition in this tough economy,

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REGIONAL MARKET PROFILE: DETROIT

nesses are busy again,” Ben B. Schwartz’s limited number of residents within the city supermarkets in the city, many that cater to Stone says. has impacted the retail climate. “The big specific demographics. “Detroit’s inde- Casual comfort food, in particular, is question people ask is whether there are pendent stores are cutting edge,” Russo on the rise, with a growing number of enough grocery stores in the inner city, but says. “They have a positive impact on the bars and grills, barbecue and Mexican the real question is whether or not there are terminal market, as well.” restaurants. “Although a small segment enough people to support these establish- Detroit’s Gigante Prince Valley Superme- of these are upscale restaurants, there ments,” Stone says. “It can be a losing rcado, a single-store retailer, has one of the are more high-end eateries opening up proposition for big chains that have a social higher volumes in the city and has been in in the city, as well,” Russo says. “These commitment. I don’t see the amount of business for 37 years. The store caters to the places offer reasonably-priced food and support for the type of stores that other Hispanic marketplace. The operation creative menus.” communities can back.” includes a tortilla factory and bakery. Like the foodservice segment, the This has led to an influx of independent Produce is the focus of Gigante due to its demographics and comprises 10 percent of sales. Popular Hispanic produce items include Roma tomatoes, avocados, jalapenos, habeneros, fresh poblanos, nopales (cactus leaves) and Spanish onions, including large red and white. Still, because healthier eating is typically not a priority for its customers, produce is more difficult to sell. What has had a positive effect on business is the state welfare system’s new program that offers shoppers better deals when they shop at independent retailers. “There has been a rejuvenation, with most vacant buildings having been torn down,” says Joe Gappy, manager of Gigante Prince Valley. “There are more independent markets here because most chains cannot survive in the inner city due to pilferage. We can keep a better eye on it.” E&L Supermercado, a Detroit-based single store retailer, is another independent retailer in the city positioned to serve the area’s Hispanic population. The store opened in the 1940s and is family-run by the third generation of the founders. In the past, these stores had sales fluctuations that increased as much as 30 percent in the summer due to seasonal workers, but these have leveled off recently. “We don’t see the fluctuations in sales from winter to summer, because we don’t have the seasonal customers that we used to,” says manager Brian Dubrinsky, who attributes this to the economy in Detroit. “Many Hispanics work in landscaping, construction and agriculture, which are all summer vocations, so these workers would move out of the area in the winter.” This year, the drought resulted in no work for apple picking, and construction and landscaping opportunities were few and far between. “These changes meant the seasonal Hispanics were not here,” Dubrinsky says. “It makes it easier in some respects, because without fluctuations, we can regulate a little better. It was a hard adjustment to make, and now we don’t

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have to make it.” Like Westborn Market, University Foods, moved to a new area with the remodel. E&L Supermercado constantly revamps a single-unti Detroit retailer, purchases a The organic section was incorporated with its offerings based on consumers’ changing large amount of Michigan produce to help conventional produce and, as a result, preferences. “Sometimes we will see sales support the local farmers and economy. The sales for organics have doubled. “Our driven by a food show, or if consumers see store recently remodeled its produce depart- customers are seeking healthier produce,” a recipe or someone using a particular item ment, installing new shelving and revamping Marrogy says. “Fresh beets and leeks are on television, they will ask for it,” its water system. “We had to move our now selling well.” Dubrinsky says. vegetables, because our water system broke The produce industry continues to thrive As part of the city’s program that down,” says Sam Marrogy, produce in Detroit. Evidence of this is Rocky promotes healthful eating in schools, chil- manager. “We now have a new round shelf.” Produce’s new sales and accounting dren are regularly taken on tours through University Foods’ produce is sold in offices, and Ben B. Schwartz larger remod- E&L’s produce department and store. bulk, not wrapped. Bulk greens were eled office space. pb “People will point out the choices children should be making,” Dubrinsky says. “The programs in schools that promote healthier eating have had a positive impact on our produce sales overall. Kids are given vouchers to buy items. They learn how to pick out fresh fruits and vegetables and what they can get for their money.” Dearborn, MI-based Westborn Market, an upscale gourmet store that has three Detroit-area locations, opened almost 50 years ago as a corner fruit stand. With a focus on produce, the store also offers hot foods, meats, deli items, fish, baked goods, dairy products and grocery items. “Inde- pendents are huge in Detroit compared with other parts of the country,” confirms Jim Moran, Westborn Market’s produce buyer. “When independents started in this region, they were very quality-oriented, and customers gravitated toward beautiful things that taste great. We were initially able to focus on one aspect, that being fruits and vegetables. Now we have a full line of offerings.” At press time, soft fruit was in full season at the store, including cherries, peaches, nectarines and plums. During fall, the store brings in more local items like tomatoes, cucumbers and green peppers. “Unfortu- nately, this year’s drought hurt Michigan blueberries, and we were never able to get the same quality as last year,” Moran says. “The price was slightly higher than last year. There also weren’t Michigan peaches, and we won’t have any Michigan apples. For some orchards, this is a first in three generations.” Still, Moran notes that Michigan grape tomatoes have rebounded, even though these are in short supply. Southern peaches were prevalent from Georgia and the Carolinas. The market will look to New York for apples this year. “Weather always is the biggest challenge,” Moran says. “Items like corn came early, and other items were stunted or came late due to the weather issues this year.”

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ORGANIC PRODUCE MARKETING Make The Most Of Demographic Opportunities For Organic Growth

The organic category continues to grow in more than pocket niches around the country. BY CAROL M. BAREUTHER, RD

Kings Food Markets carries every apple variety in a one-to-one ratio of organic

PHOTO COURTESY OF KINGS FOOD MARKETS INC. and conventional.

n an economic environment proving Francisco, CA-based Pacific Organic Produce Northwest, especially Seattle, was a grass roots difficult for many retailers,Whole Foods Inc., adds,“The success of alternative formats leader in the organic movement, and has been Markets, the Austin, TX-based retailer of like Whole Foods has increased the popularity generating powerful organic sales for the past Inatural and organic foods, increased its of organic and forced conventional retailers 10 to 15 years. Nearly 200 miles south of sales by 13 percent to $8.8 billion for the such as Wal-Mart and Safeway to add Seattle in Portland, OR, the 9-store chain New 40-week period ending July 1, 2012. If you organics in an effort not to lose customers.” Seasons Market offers customers 75 to 80 think this says something about consumer At retail, and not including booming alter- percent of its produce as organic, according demand for organic food, you’re right. native format retailers such as Whole Foods to Jeff Fairchild, director of produce. “Our Organic food sales are booming, contrary Markets, Earth Fare and Sprouts, organic shoppers are parents with young children to the belief that consumers may leave higher- fruits and vegetables accounted for a nation- who are concerned with health,” he details. priced products on the shelf when wide average of 5.7 percent of total produce “The Northwest is also dominated by foodies pocketbooks are slimmer. To put it in dollar department sales in the 52 weeks ending June who seek out organic for its flavor and quality, figures, the organic food and beverage sector 30, 2012, according to the Nielsen Perishables whether they are grocery shopping, buying at grew by 9.4 percent to $29.2 billion, according Group, a West Dundee, IL-based fresh food- the farmer’s market or eating at a white table- to the Organic Trade Association’s (OTA’s) consulting firm. Yet in some regions of the cloth restaurant. People here probably also 2012 Organic Industry Survey, with the fruit country, conventional and small independent buy more because it’s available. In season, and vegetable category contributing close to retailers are successfully selling four or more there are over 30 farmer’s markets in Portland 50 percent of these new dollars. Industry times this percentage. It’s not just on the with 20 to 25 percent of organic product.” experts predict that organic food sales will coasts, known to be long time bastions of Lara Grossman, the Monterey, CA-based continue to grow at a rate of 9 percent or organic food sales. Several other regions of sales and marketing manager for FoodSource, higher through 2013. the country are poised to become future a C.H. Robinson Company, says, “Colorado A hunger for healthful foods is one factor population centers for organics. Retailers and the Rocky Mountain states are also strong driving organic demand. In addition, Andy need only recognize and capitalize on this and organic markets due to consumer interest in Martin, president of A&A Organic Marketing merchandise astutely to see their organic the environment and sustainability. Phoenix Inc., in Watsonville, CA, remarks, “Prices are produce sales soar. and all of Arizona is exploding, as evidenced now competitive; quality is excellent; media by organic retailers such as Sprouts Farmers coverage is broad and the consumers know Where The Opportunities Lie Markets opening up more stores there.” about it.” The West Coast, in general, is a highly “Second to the West Coast as an organic Greg Holzman, founder/owner of San developed market for organics. The Pacific stronghold is the East Coast,” says Addie

142 PRODUCEBUSINESS• OCTOBER 2012 Kern Ridge.qxd:Kern Ridge.qxd 9/25/12 5:06 PM Page 1

One more reason why Kern Ridge Growers should be your California carrot supplier.

Kern Ridge Growers has been in the carrot producing industry for over 25 years. We pride ourselves in providing our customers with consistent quality and service on a year-round basis. We carry a full line of products and in an effort to service our customers better we have recently added an organic carrot program under the “All Natural” label.

Please take a look at our new products and allow us the opportunity to care for your needs as well as show you our continued commitment to our customers.

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ORGANIC PRODUCE MARKETING

Pobst, import coordinator and food safety based chain that has grown from one to 10 officer for CF Fresh Inc., in Sedro Woolley, Top 10 Organic Fruits stores over the past decade, is a prime WA. “There’s a mainstream acceptance for Total United States example of a retailer that has always had a organics in the Northeast. Most of the 52 weeks ending 6/30/12 focus on its perishables, especially produce. region’s major retailers carry organics.” Sean Reynolds, director of produce, says,“The Underscoring this, dollar sales of organic demand for organics has grown over the years vegetables at retail are highest in the Northeast FRUIT DOLLARS/STORE/ and represents a significant focus for us as an at 28.2 percent, according to an August, 2012 WEEK organization. We have a very diverse customer report, Vegetable Review (Focus on Organic Berries $316.17 base and by offering organics in the commu- Vegetables), prepared by Bakersfield, CA-based Apples $201.08 nity, this allows us to provide for all of our Grimmway Farms with 52-week data ending Bananas $100.71 customers’ needs. As the demand for organics July 15, 2012 by FreshLook Marketing. Citrus $70.67 grows, so does our volume needs; we are Paul Kneeland, vice president of produce Grapes $53.48 constantly searching for the best organic and floral at Kings Food Markets, a 25-store Avocados $26.11 growers both locally and globally.” chain based in Parsippany, NJ, where 16 Pears $22.86 According to FoodSource’s Grossman, one percent of produce sales is organic, remarks, Stone Fruits $21.98 of the newest frontiers for organics is in the “Originally, the main customers were young Specialty Fruits $19.40 Southeast and South Central states. “We’re couples who wanted to eat healthfully. Now, Cherries $8.81 seeing more interest by retailers in cities such the biggest trend is customers with children. as Atlanta, Miami and Dallas,”she details. Our customers are highly educated and are Source: Nielsen Perishables Group Craig Hope, chief customer officer for knowledgeable about food trends.” Earthbound Farm, headquartered in San Juan “Beyond the bi-coastal organic bastion, Bautista, CA, agrees, “We have some conven- the opening of organic retailers in the weeks ending July 15, 2012, while sales growth tional retailers in North Carolina that are Midwest is poised to change this previously in the Northeast was only 5 percent. Bob averaging 25 to 30 percent of their packaged untapped market and help organic sales Scaman, president of Goodness Greeness, in salad sales as organic.” Substantiating this grow,” predicts Grossman. Whole Foods Chicago, IL, explains, “What we are seeing is trend, dollar sales of organic vegetables Markets is moving into this region. The chain several new independent retailers in the increased 12.4 percent in the South Central broke ground on a new location in downtown Chicago area are building a competitive niche region during the 52 weeks ending July 15, Detroit in May, and recently opened stores in for themselves against the low-cost leaders by 2012, the second highest growth rate in the West Des Moines, IA, and Wichita, KS. working the perimeters of their stores and nation after the West at 13.3 percent, Interestingly, dollar sales of organic focusing more on organics in produce. We’re according to the Vegetable Review report. vegetables at retail are 14.2 percent in the seeing this trend filter out from Chicago, “With the opening of retailer stores such as Great Lakes region, the second highest in the Detroit and Milwaukee to more rural Earth Fare and Fresh Market, Florida is the nation after the Northeast, according to the communities in southern Indiana and Iowa, next target,”remarks Pacific Organic Produce’s Vegetable Review report by Grimmway Farms. locations where there are also established Holzman. “There’s good opportunity and What’s more, organic vegetable sales in the organic farmers.” consumers are receptive to organic product.” Great Lakes grew 9.1 percent over the 52 Sendik’s Food Markets, a Milwaukee, WI- Mitch Blumenthal, president and CEO of

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“When organic first started it was two to three times the price of conventional. Now, there’s more supply and a more reasonable cost. We will often substitute and carry organic in place of conventional if the price is close. This is one way we’ve grown our percent sales of organic.” — Paul Kneeland, Kings Super Markets Inc.

Sarasota, FL-based Global Organic/Specialty based Melissa’s World Variety Produce Inc. Source Inc., which sells primarily to the “First, is the long-time organic customer who southeastern U.S. market, says,“The presence cares strongly about the environment,”he lists. of colleges and universities can influence “Second, is the newer customer who perceives demand in some areas. Of course, many of organics as healthier. The health-oriented these schools are located in highly populated consumer is the core customer and where the city centers, where, obviously, you will see real growth area is today.” more sales. As one might imagine, we send a Scott Mabs, director of sales and lot more trucks to the Miami area than we do marketing for Homegrown Organic Farms, who throw a few organics on a shelf in the right now to Birmingham, Alabama.” located in Porterville, CA, says,“Retailers who corner, and the ‘want-to’ retailers who really look at organics not as a specialty, but as a invest time and effort and realize that they can Make The Most Of Merchandising healthful option at a reasonable price, see really make money with organics. Obviously, Take a cue from what retailers in successful growth across the board.” the latter group is more successful.” organic regions are doing to grow sales. First, Secondly, have a strategy and merchandise Don’t forget the merchandising basics, identify the customer.There are two markets for well in order to sell. Todd Linsky, vice presi- provided in four succinct points below. Hope organic produce,according to Robert Schueller, dent of organic sales at Grimmway Farms, of Earthbound Farm emphasizes, “Carry the public relations director for Los Angeles, CA- points out, “There are the ‘have-to’ retailers right products; give them good placement in

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ORGANIC PRODUCE MARKETING Top 10 Organic Vegetables a highly visible area; price them right; and rank No. 1, contributing 21.8 percent dollar understand the customer.” Total United States share, followed by lettuce at 14.8 percent, and 52 weeks ending 6/30/12 tomatoes at 12.5 percent. Vegetables with the 1. Stock Enough Variety And Volume largest dollar sales gains over the past year Mainstream retailers have really picked up FRUIT DOLLARS/STORE/ included kale at 92.9 percent, beets at 32.8 on organic. CF Fresh’s Pobst reports,“Instead WEEK percent, and beans at 32.5 percent. of 12 items or less, they are now carrying a Packaged Salad $531.49 Many retailers have developed their in- large variety of several dozen or more items, Carrots $170.14 store organic program to reach a critical mass. and there is more parity in the conventional Lettuce $156.44 David Posner, president and CEO of Awe and organic mix.” Tomatoes $116.46 Sum Organics, a Capitola, CA-based details, New Seasons Market offers its customers Onions $84.13 “They have gone from box to pallet quanti- a wide selection of organic fruits and vegeta- Cooking Vegetables $63.10 ties, which means there is enough movement bles. Fairchild specifies,“Mainstream retailers Cooking Greens $58.22 and turns to assure freshness.” usually target the ‘dirty dozen’ and root Potatoes $55.91 Value-added will play a larger role in vegetables and stock these in organic. We tend Celery $55.03 organic in the future, says Randy Bache, CEO to offer just about everything organic.” Value-Added Vegetables $34.79 of Skyline Potato Co. LLC, in Center, CO. “I Similarly, just about any produce item is think we’ll see an organic version of potatoes available in organic at Kings. Kneeland Source: Nielsen Perishables Group in a steamer bag in the future,”he predicts.“If details, “We’ll carry every berry and every you give people ideas how to prepare a apple variety one-to-one in organic and organic leaf lettuces, tomatoes, potatoes, product, they will try it.” conventional, for example. After that, we’ll onions, squash, red peppers, lemons, limes, carry several varieties in lead categories like apples, pears, grapes, berries and more.” 2. Integrated Versus Segregated Displays tomatoes, carrots and citrus. Even organic Organic vegetables represent 4.6 percent The jury is still out on what is the best way tropical like mangos, pineapple and bananas of total vegetable sales for the 52 weeks to display organic produce: segregated into a are popular.” ending July 15, 2012, according to the separate organic section or integrated with Sendik’s, too, has increased its volume and Vegetable Review. Of this, the Top 10 organic conventional produce. Grimmway’s Linsky variety of organic offerings over the years. vegetable categories accounted for 80 percent confesses, “I’ve always been a big proponent Reynolds notes,“We carry a large selection of of total organic vegetable dollars. Carrots of integrated. It gives customers a choice.

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However, today, we’re seeing fancier segre- Northeast, and 36 percent in the Midsouth. “When on ad,” he says, “we’ll match the gated sets such as at Kroger stores in Southern “To grow organic sales,” Homegrown’s conventional in price. This pricing strategy is California with more variety and promotion.” Mabs recommends, “treat organic and another way we’ve grown organic sales.” The question of integrated versus segre- conventional with similar margins and At first, promotional prices build demand, gated depends on the retail customer. number of ads.” agrees Holzman. “Then, as demand builds, Earthbound Farm’s Hope explains,“If you’ve Sendik’s Reynold’s says, “Not only do we you can get the higher prices needed for got a group of shoppers who know and exclu- provide a wide selection of organic offerings organic,”he says. sively buy organic, then a segregated spot in our stores, but we also provide our offers them the convenience of going to that community with several organic ad items 4. Value Of Education exact area where they can find what they each week as well.” Educated customers are a prime demo- want. For the vast majority, however, an inte- Kneeland also advertises two to three graphic for organics. Thus, educating all grated set can produce higher sales of organic fruits and vegetables weekly at Kings. customers is a great way to grow organic organics. It presents choices in front of consumers at once and doesn’t force them search out the organic section.” Kings’ Kneeland says, “In my career, I’ve tried it 15 different ways and found that integrated is the best way to get the cross-over or on-the-fence customer.” Similarly, Fairchild at New Season’s Market also builds integrated displays that are segregated. “Since we predominantly offer organic, we’ll, for example, display conventional red peppers with plastic dividers to prevent co-mingling on the shelf below the organic. This way, product isn’t separated, it’s segregated and signed within the produce category. Green signs mean organic and blue is conventional.” “We utilize both integrated and segregated sets at Sendik’s,” tells Reynolds. “Depending on the store, and in turn, the marketing area, we will segregate and integrate our organic offerings, making sure to follow good organic retailing practices. We have found that by offering both types of sets, we can provide our customers with the best selection and options possible.” Pacific Organic’s Holzman adds,“You can have effective segregated displays like Safeway and equally effective integrated displays like at Whole Foods. The key is to make a commitment and do it well.”

3. Price & Promotion Price is no longer the barrier it once was to organic trial. Kneeland explains, “When organic first started it was two to three times the price of conventional. Now, there’s more supply and a more reasonable cost. We will often substitute and carry organic in place of conventional if the price is close. This is one way we’ve grown our percent sales of organic.” The organic versus conventional price gap was highest at 41 percent in both the West and South Central regions for the 52 weeks ending July 15, 2012, according to the Vegetable Review. This gap was lowest in the Southeast at 31 percent, followed by 33 percent in the

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ORGANIC PRODUCE MARKETING “You can have effective segregated displays like Safeway and equally effective integrated displays like at Whole ALPINEFRESH AYCO FARMS CARB-AMERICAS CRYSTALVALLEYFOODS CUSTOMIZED Foods. The key is to make a commitment and do it well.”

— Greg Holzman, Pacific Organic Produce TEAMPRODUCE

sales.“Organics are no longer for the elite or wealthy or a particular class of consumers, says Samantha Cabaluna, director of communications for Earthbound Farm. “There is an educational element. For example, we see organics sell well in retailers near college campuses.”

Grimmway’s Linsky agrees. “Consumers SOUTHERN SPECALTIES make a conscious decision to get into the category and want to engage with the products they buy,” he says. “Retailers need to recognize that they have a relatively captive audience with the organic consumer and that this customer is hungry for information. That’s why we’ve developed a strong website and added QR codes on our packaging.” Suppliers do provide several tools to help retailers educate their shoppers on organics. Mabs details, “We offer 7x11-inch cards that list the benefits of organic. We also have display bins for citrus and stonefruit that highlight the fruit as organic and explain what organic means.” CF Fresh posts produce and grower profiles on its website for retailers who want ROSEMONT FARMS a C.H. ROBINSON COMPANY to educate their customers about organic products and where their produce comes from, whether domestically or internationally. Finally, in a show of how eager consumer are for education, Earthbound Farm’s Take an Organic Step Forward program, which was launched April 16th via a POS and on-pack promotion, signed up over 80,000 users by mid-August, way more than the 50,000 the PROGRESSIVEPRODUCE company hoped to reach by the end of 2012. The program, which is designed for people who want to learn about organics, but don’t have a lot of time, sends an e-mail a day with recipes and other information to interested customers. In addition, program customers receive a coupon a week for organic produce. Cabaluna says, “There are not that many coupons out there for organics and these

coupons can make organic products cost- THEPERISHABLESPECIALIST accessible and encourage trial. In fact, coupon redemption is as high as 27 percent.” pb PAIA ALPINEFRESH AYCO FARMS CARB-AMERICAS CRYSTALVALLEYFOODS CUSTOMIZED

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BROKERS GOURMETTRADINGCOMPANY HARVESTSENSATIONS JACOBS,MALCOM&BURTT KEYSTONEFRUITMARKETING PAIA H EIHBESPECIALIST PERISHABLE THE RGESV PRODUCE PROGRESSIVE OEOTFRSaCH OISNCOMPANY ROBINSON C.H. a FARMS ROSEMONT OTENSPECALTIES SOUTHERN EMPRODUCE TEAM

BROKERS GOURMETTRADINGCOMPANY HARVESTSENSATIONS JACOBS,MALCOM&BURTT KEYSTONEFRUITMARKETING OCTOBER 2012 •PRODUCEBUSINESS 149 Pecans.qxd:Layout 1 9/26/12 1:08 PM Page 1

DRIED FRUIT & NUTS Halves Or Pieces, Pecans Sell Well In Produce

With dedicated merchandising efforts and a bit of consumer education, paying attention to pecans can go a long way toward boosting sales. PAULA HENDRICKSON

Pecans halves — shown as part of a larger nut display — are thought to be the smartest and most versatile merchandising option.

s tree nuts, pecans grow on trees Camilla, GA-based Harrell Nut Co., says there attention from the store staff, which helps just like apples, cherries, peaches are three basic reasons pecans sell well along- with the merchandising of the product,” he and oranges. Pecans pack plenty side fruits and vegetables: 1) consumers desire points out. In other words, produce workers A of nutritional power, just like the freshness; 2) the produce department is for pay closer attention to turnover than their fruits and vegetables sold in healthier food options, while baking aisles are counterparts do with center-store products. produce. The similarities don’t end there. associated with sweets; and 3) positioning While some grocery chains have yet to “There are so many varieties of pecans,” says pecans in produce reminds consumers of discover the benefits of stocking pecans with Putt Wetherbee, vice president of sales and their healthfulness and freshness.“We’ve been produce, others figured it out a long time ago. marketing for Schermer Pecans, in Glennville, awarded the Heart Healthy label approval “During my 27 years in produce, we have GA, and board member of the Tifton-based from the American Heart Association, and always merchandised pecans in the produce Georgia Pecan Growers Association. “Pecan antioxidant studies are coming out that show department,” reports Kevin Hurley, manager flavor tones are as variable as those of apples,” neurological benefits from pecans,” he speci- of produce merchandising at the 104-unit he adds. fies. “There’s a vast array of health benefits Tampa, FL-based Sweetbay Supermarket. that are becoming more prevalent now, and “Pecans displayed in fast traffic areas are Place Pecans In Produce that’s one of the key things for our industry. It where customers make purchases out of Recent studies indicate pecans have more goes back to why it’s important that we’re in impulse.” He notes that shoppers are more antioxidants than other tree nuts, and the the produce department and not just in the likely to hit the baking aisle for pecans when American Heart Association just gave pecans baking aisle.” buying specific ingredients for a recipe, but their official Heart Check-mark certification, The hurdle, according to Wetherbee, is are more apt to buy pecans on impulse in the further bolstering growers’ argument that that “Pecans need to make the leap from produce department. pecans should be sold alongside other fresh ‘ingredient’ to ‘healthy snack.’” “Pecan halves and pieces are stocked in produce. Even before science proved the An interesting thing happens when pecans the baking aisle as well,”Hurley adds.“Most nutritional power of pecans, smart retailers are moved from baking aisles to produce items sell extremely well when tied into the knew they belonged in the produce depart- departments, according to Paul Joseph, vice produce department, as they have a much ment. Yet some retailers still stock pecans only president of sales for South Georgia Pecan ‘fresher’ perception.” in the baking aisle. Co., headquartered in Valdosta GA. “The Growers believe the new Heart Healthy Brandon Harrell, sales manager at perishable nature of those products demand designation and the AntioxiNUT campaign

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have changed how pecans are perceived.“This has enlightened retailers and provided the proof that pecans do belong in the produce department,” says Tammy Merritt, who with her husband, Richard, co-owns Merritt Pecan Co., in Weston GA. “Richard has always encouraged our buyers who sell shelled or in- shell product to move them to the produce department for several reasons: better storage, more visibility and increased sales due to more traffic in the produce aisle as opposed to the baking aisle.”

Halves vs. Wholes; Bagged vs. Bulk In-shell pecans are more likely to be displayed in your local produce departments during the holidays, and while they make eye- catching displays, the fact is consumers prefer the convenience of shelled nuts. “Bagged, shelled pecans present very well,”says Harrell of Harrell Nut Co. “You have a lot less “In the past, Sweetbay has carried bulk In-shell pecans are protected by their shells, shrinkage, too, because you can properly pecans, but moved to carrying bags in recent but some consumers — and some retailers — track the links of how long it’s been in the bin years because of the high cost of pecans don’t realize shelled nuts are perishable and since it’s a unit, as opposed to a bulk item. compared to other in-shell nuts,” Hurley can be damaged. “Of course they’re not as Plus, there is less waste because it’s packaged says. “Bagged pecans offer a cleaner display perishable as your thin-skinned fruits; they and protected. With bulk bins, products get and lessen the chance of misidentification at don’t bruise and damage like a tomato would,” broken, cracked and dropped on the floor.” the register.” says J.W. Christiansen, long-time grower and

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DRIED FRUITS AND NUTS

consultant with Albany, especially in larger mega- GA-based Nut Tree Pecan marts. “It’s easy for Co., and board member of “Pecans displayed in fast traffic areas pecans for get lost the Georgia Pecan are where customers make purchases without good displays Commodity Commission, and merchandising,” he located in Atlanta. “Pecans out of impulse.” notes. “They need to be — Kevin Hurley, Sweetbay Supermarket won’t bruise, but once stacked so the consumer they’re in a package they can see the nuts. When need to be kept cool. That’s the main thing to Growers agree that pecans deserve eye- you have to search the department to find six keep them fresh.” catching displays and a little extra promotion bags of pecans stuck in a shelf under the Harrell says pecan halves are better sellers at other times of the year, too. “Merchan- walnuts, you do not have confidence in the than pecan pieces, but sees potential for dising pecans is just as important as pricing freshness of the product.” pieces, too. “As an industry, we feel the pieces is for boosting sales,” says Richard Merritt of Nearly 15 years ago, after listening to could be a much bigger seller because of the Merritt Pecan Co. “When consumers see a retailer complaints about their old bags acci- price difference. Pieces are generally less prominent display of fresh pecans, they are dentally tearing open and causing shrinkage expensive than the halves.” more likely to buy pecans on impulse, and waste, Harrell Nut worked with its film Christiansen thinks it could bring more compared to viewing a small bag of pecans manufacturer to develop stronger bags. Then stability to the market. “The halves are most placed on the shelf in the baking aisle.” He a retailer said they had problems transferring merchandisable because you can make also notes that displaying pecans in a dump the bags to shelves. “We worked very closely chopped out of halves, but you can’t make bin for long periods is a bad idea, since it with this retailer’s produce buyer and devel- halves out of chopped,” he points out. “That doesn’t help maintain freshness. oped a one-touch box,” Harrell says. “It was makes halves more merchandisable.” While most pecans are bagged, Merritt ready for display shelves, or you could simply pecans are packaged in clear, airtight, water- pull the top off the box and it’s ready to go.” Merchandising, Promoting proof and tamper-evident acetate containers The retailer still uses it today. And Pricing Move Pecans that Tammy Merritt says offer an advantage Christiansen with Nut Tree Pecan would “Sweetbay promotes pecans by building beyond safety.“They also make a nice presen- like to see an industry-wide effort to educate large displays of holiday nuts — bagged in- tation and allow the customer to clearly see consumers while they’re in the store. “We shell nuts and trays of nut meats — utilizing the product,”she says. might want to look at having some POP liter- in-store signage and weekly circulars,” Joseph of South Georgia Pecan says pecans ature available for the stores to have in their Hurley says. that aren’t readily visible are harder to sell, produce department to pass on to the Pecans.qxd:Layout 1 9/26/12 10:01 AM Page 4

but 16-oz. packs in grocery stores, but now retailers are going for 12- and 8-oz. packs. It gives a similar price point, but the end- consumer is paying less at the cash register, which keeps pecans as a profitable item for the store. But at the same time, consumers are more willing to pay for a $5 bag as opposed to an $8 bag.” South Georgia Pecan Company’s Joseph says merchandising pecans makes a huge difference to the bottom line.“Pecans have a lot of competition from lower-priced nuts that can be used in many of the same recipes,” Joseph says. “If pecans are not merchandised well and if they do not appear fresh, many people will choose a less expensive alternative.” Because the pecan industry is smaller than those of competing nuts,it has a much smaller marketing budget. Harrell says that means the competition gets more prominent displays, too.“Not because they’re any consumer — information on how to store already has worked on some POP literature, better, but because they have more money pecans to keep them fresh; how long they’ll but he’d like to see more. to spend,” he says. “Despite the limited be good in a refrigerator; something about the Offering different sized packages would budgets, we’re working together to promote nutritional value, and maybe a couple of key give consumers more price points to choose what we have and get the awareness out recipes on the same brochure. On a fairly from, which Harrell thinks will help move there that we’re good, too. Those efforts small piece of literature you can pass a lot of more product. “Going forward, I see more aren’t just on the grocery or retail side, but information on to consumers.” He adds the and more retailers going to smaller pack as an industry as a whole, and have really Georgia Pecan Commodity Commission sizes,” he says. “Years ago, there was nothing helped boost our sales.” pb Harris.qxd:Layout 1 9/25/12 5:10 PM Page 1

RETAIL PERSPECTIVE

BACK TO BASICS

s we move from summer into fall well-trained produce personnel. A and schools are back in session, our The major benefit of teaching and learning these basic skills can be interest turns to football, soccer, and summarized as protecting the product. Since our fruits and vegetables other fall sports. The teams having early are living, breathing organisms, once they are picked, they begin to success are the ones that put in the extra die. The basic skills described above are strategies to combat the efforts during training camps in the degradation of the product and prolong its salable life. Each one has summer. These activities centered on individual benefits that replenish, protect, or enhance the salability conditioning and the basics of the game, of the product. Each of these skills makes it possible to increase sales from blocking and tackling in football to and lower shrink. These are two measures that management under- dribbling and passing on the soccer field. stands. If the connection can be made between the training benefits The focus on these fundamentals is the building blocks of success in of these skills and the increase in sales and the control of shrink, a these and all sports. Just as in the sports world, in produce, we also strong case can be made for the necessity of basic skills training. have basics — the form and foundation for everything we do in the Making this case is very important, as recent observations at retail store to be successful. retailers across the country illustrate a lack of these skills. Worse than In our world of cost control, that, it shows an ignorance of the we sometimes lose sight of the skills in many occasions where importance of instilling these the produce personnel just don’t basic skills in our produce know what to do. This results in personnel. Many times, when In our efforts to please management’s produce departments that have presenting a training program expectations of controlling the cost of variable quality and a jumbled, for management, I would receive disorganized presentation. While a blank stare as there was no running the produce department, we this is not to say that basic recognized way to justify the cost must not lose sight of the responsibility training is the cure-all for this of the training. No matter how that we have as produce management situation, it is to point out that hard or how passionately I the investment in this training argued the point, nothing to train our employees so they can would allow for immediate seemed to get through. Once have the tools to be successful. improvement in the presenta- again, it was another case of tion, operation, and profitability “They just don’t get it!”This type of the produce department. This of perception seems to permeate would establish those key the entire produce world as well building blocks that allow for as it does in the business world. With the present emphasis on cost good produce operations. It is a fact that the most successful produce control in retail, many things are sacrificed for the sake of the bottom operations in the United States invest heavily in training their line, including training personnel in the basics of produce operations. employees to master these basic skills. The truth of the matter is that the teaching of these basics skills is In our efforts to please management’s expectations of control- the foundation of a smoothly operating and profitable produce ling the cost of running the produce department, we must not lose department. The key teachings on product care, rotation and culling, sight of the responsibility that we have as produce management to temperature control, trimming and crisping, proper storage, and basic train our employees so they can have the tools to be successful. In merchandising can make the difference between an average or sub- spite of the pressure to keep costs down, we must utilize the bene- par produce operation and a good one that offers customers excellent ficial factors gained from training to motivate upper management choices of fresh and appealing produce. Produce management, of to make the investment for the betterment of the employees and the course,“gets” it, as to the vital importance of such training. However, total operation.The worst thing we can do is to throw up our hands the present environment with management only views this activity and say,“Management just doesn’t get it,”when we meet with resist- as a cost with no appreciable return. Having faced this challenge ance to our proposals.For if we do,we will pay the price in terms of numerous times, it is difficult, but not impossible, to change manage- declining product quality, salability, and presentation of the department’s view of the value of this training. It simply requires logical ment, which will have negative effects upon sales, shrink, and thinking and a presentation of the benefits that can be derived from ultimately, profitability. pb

By Don Harris Don Harris is a 38-year veteran of the produce industry, with most of that time spent in retail. He has worked in every aspect of the industry, from “field-to-fork” in both the conventional and organic arenas. Harris is presently consulting on all subjects of retail, category development and sales strategies, among others. Comments can be directed to [email protected]

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EUROPEAN MARKET EUROPEAN ECONOMIC CRISIS TRANSFORMS SHOPPING BEHAVIOR

he economic crisis in Western Europe in Western Europe through larger package sizes and also ecological Thas reached the shelves in supermar- products. However, the dire economic situation and negative growth kets. As consumer wallets grow forecasts are increasingly encouraging them to find alternate ways for thinner, growers and retailers are increas- growth. In Europe, branded suppliers are seeking to offer entry-level ingly offering smaller package sizes and products with smaller quantities, less ingredients or simpler packaging. simpler products to help reduce consumers’ Retailers are also seeking to invest in their private label brands, weekly spend. which are rapidly increasing sales. In some countries, retailers are emphasizing their commitment to specific markets by stressing the Europe Sees Emerging Market localized origin of products and suppliers. Strategies Appear On Its Shores After years of declining and stagnating revenues in Western Europe, Clash With Private Label Brands consumer goods manufacturer Unilever is following strategies it orig- While smaller package sizes and entry-level prices would meet inally applied in developing markets in Asia. “Poverty is returning to consumers’ demand for more affordable products, this would also place Europe,” Jan Zijderverld, Unilever’s top European manager, recently groceries in direct competition with retailers’ private label brands. In told Financial Times Deutschland. “If a Spaniard only spends EUR17 Portugal and other crisis-torn markets, the economic downturn has (USD21) per shopping visit, you cannot sell him washing powder for made price a crucial factor in the customers’ shopping decisions. This, half of his budget,” he added. As a result, Unilever has begun offering together with the fact that shoppers are increasingly seeing private smaller, less expensive, packages, so as to limit the strain on shoppers’ label products as delivering good value for money, is fueling sales increasingly limited budgets, while it is increasingly committed to growth. Retailers themselves are also becoming more innovative to invest overseas. cater for the more cash-challenged budget. In France, Aldi Süd is offering capsicum in mini portions. Spanish grocer, Mercadona, has Leaner Times Ahead reintroduced loose packaging for fruit to reduce handling and pack- Unilever’s change of strategy in Europe seems to make sense. aging costs. Inevitably, we will see both private label and branded According to a recent report from the European Commission, there consumer goods adapted to shopper needs even more in the future. was a sharp rise in the numbers of households experiencing financial distress across the EU during early 2012. These households struggle to New Breadth Of Assortment To Meet Consumer Needs meet their everyday living requirements and are either running into The impact of retailers’ and suppliers’ initiatives on consumer debt or drawing on savings. The pressure on the consumer budget behavior is backed by Aimia, a global provider of loyalty solutions, might not come as such a surprise given the austerity measures imple- which conducted an analysis across a range of product categories at a mented in Greece, Portugal, Spain and Italy, as well as their persistently number of retailers it works with. David Hamilton, Analytics Solution high unemployment rates. As a result, growers and retailers need to Director for Aimia, said: “We’ve seen that retailers and manufacturers revise their strategies to meet demand and achieve growth. are providing a new breadth of assortment and promotions to provide their customers with more choice suited to their needs. Retailers who Change Of Shopping Habits In Western Europe have a better understanding of their customer segments through data Shopper behavior has changed, too. Sainsbury’s, a UK grocery analysis are providing more suitable product choices, which are retailer, found that customers are visiting more often, but buying less helping customers through the recession, whether that’s in buying than before. The picture in France is similar. Bruno Witvoet, president larger pack formats for better value or helping customers reduce their of Unilever France, said: “The value of the average shopping basket consumption and product waste by providing smaller pack sizes.” tends to decrease, while the frequency of purchases tends to increase.” Adjusted package sizes and more basic products, however, will While consumers, are demanding more affordable products, they also be increasingly demanded in countries less affected by the also tend to increasingly plan their shopping prior to visiting a store, a Euro-crisis. In many European countries, such as Germany, there trend often referred to as the “professionalisation of shopping.” In the are more and more single or two-person households, following UK for instance, consumers have largely scaled back purchases on decades of falling birth rates and the spread of more individualistic organic products, fruits and vegetables since 2008. While the purchases lifestyles. These consumers demand more suitable product quanti- of fresh fruits and vegetables have declined overall, some retailers like ties, especially in essential categories such as bread and vegetables, Waitrose, however, have bucked the general trend by capturing fami- for their consumption needs (a factor that has also been behind the lies who have traded down from eating out. recent pressures on the hypermarket format in Western Europe). As such, there remains plenty of scope for both brands and private label Smaller Portions And More Emphasis Of Origin manufacturers to achieve growth by launching more tailored prod- Until recently, grocers and retailers mainly tried to achieve growth ucts to their customers. pb

By Niklas Reinecke Niklas Reinecke is an associate analyst at Planet Retail, in London, England.

156 PRODUCEBUSINESS• OCTOBER 2012 International Hotel.qxd:Ad 9/18/12 11:42 AM Page 1 Voice of Ind.qxd:Layout 1 9/25/12 4:40 PM Page 1

VOICE OF THE INDUSTRY EARTH-SAFE SOIL: INDUSTRY OPPORTUNITY, PLANET NECESSITY

could babble on about ozone and salts, and sustainable farming could be very compacted. Above the Imycorrhizal fungi for hours, but I am marketing of organic, sustainable, transitional or even local farming not a plant biologist and do not want to and the good crops they produce, there is a huge, huge fringe benefit. pretend to be one. So, here’s the punch Good, open or live, healthy soil (call it what you like) has a signifi- line: Our soil can save our planet and our cantly greater absorption of carbon wherever it comes from. Whether lives. This has been a long time coming, it comes from cover crop or cash crop, healthy soils reduce and retain but it’s a rapidly growing movement and greenhouse gasses in the air. Whether you believe in global warming everybody wins. First, some basics: fertil- or not does not matter. Healthy soil cleans the air we breathe, and izers contain salts that block natural there is no downside to that. So while good soil management improves organic elements; fertilizers are highly crops and keeps the ground alive, we should let customers know when dominant and allow a grower complete control by making the soil a they are eating produce from open soils, they are actually helping neutral (inert) component. Essentially, the soil is dead other than a save the planet. This is measurable. mass to absorb and retain nutrients. Organic farming uses sprays There should be some form of certification for these Heirloom soil and fertilizers. There is no live procedures and results quanti- food soil web. This yields consis- fying the greater absorption and tent product as quickly and retention of carbon in soil. There inexpensively as possible, or It is the process of farming and the are numerous other benefits of does it? health of the soil that will determine natural or Heirloom farming Rockey Farms [in Center, CO] nutrient density. That is what makes including reduced water usage, recently received a national award increased crop yield, more for soil conservation. They do not our produce its best, and supports nutrient density and reduced spray their plants any longer. clean air. The soil condition and the growing costs. Not to mention Their water retention is greater. process that is used in farming are the that when consumers under- They use cover crop and compost stand that eating soil-healthy and natural predators to put nutri- questions we should be asking. foods helps save the planet they ents back into the soil and keep it live on, they should significantly healthy. Their costs are down and increase their consumption of their yields are up. They are not produce. Good for us; good for certified organic, but what they do is better.They take care of the soil and the human body; good for the ozone layer; good for the nematodes soil takes care of the plants. This soil is live and open. and water supply as well. Jeff Lowenfels and Wayne Lewis wrote a book called Teaming with Instead of certifying the ambiguity of organic or understanding the Microbes, which covers living soil and the soil food web. It covers meaning of sustainable, transitional or even local, let’s come up with fungal and bacterial biomass and how to use compost, insect and something consumers can understand and relate to. Earth-Safe Soil green manure to create a live food web containing all the necessary tells a story our industry can get behind. It can be organic, sustainable, ingredients for nutrient-dense crop. This soil is live and open. green and local. Peter Byck produced a movie called Carbon Nation talking about “Eat a potato, save the planet,” or “Eat a carrot and breathe better,” the danger of greenhouse gasses. The film reviews alternatives are not bad tag lines to start. If we get behind this as an industry — including, water, wind, sun and soil. It refers to the compacting of our wake up PMA and United — it will quickly increase produce consump- soil, its inability to hold any biomass and is basically dead soil holding tion in every market. Isn’t that what produce marketing is all about? nothing. The soil this film refers to is dead. It will also drastically reduce greenhouse gasses affecting our envi- Stanford University just released a study reporting there is little ronment. Is there a better message for our industry? No one company nutritional difference between organic and conventional produce. can do this; we need the voice and action of our industry as a whole While that may be true, it is the process of farming and the health of and we will create change. That’s big! the soil that will determine nutrient density. That is what makes our When Senator Michael Bennet of Colorado scheduled a visit to produce its best, and supports clean air. The soil condition and the Rockey Farms to congratulate them for their soil conservation process that is used in farming are the questions we should be asking. achievements, he also inquired about increased carbon retention in What is the condition of the grower’s soil? the soil. The government, the farms, the books and the movies are all So here’s the thing: A lot of growers use these natural procedures starting to get this. This is happening, and if we join in, it’s only win, for their crops and many do not. Organic farming allows sprays with win win. pb

By Richard Leibowitz Richard Leibowitz is president of Culinary Specialty Produce Inc., in Mountainside, NJ

158 PRODUCEBUSINESS• OCTOBER 2012 40 under 40.qxd:Layout 1 9/14/12 3:19 PM Page 1

PRODUCE BUSINESS is accepting nominations for its Ninth 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, 1973).

To nominate someone, please fill out this form by March 1, 2013, 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] Info Showcase.qxd:Layout 1 9/28/12 11:49 AM Page 1

INFORMATION SHOWCASE

Receive supplier information fast using the Produce Business Information Showcase. Here’s How: OCTOBER 2012 Contact the advertiser directly via the Website, e-mail, or phone listed in the ad.

COMPANY PAGE # PHONE WEBSITE COMPANY PAGE # PHONE WEBSITE A & L Potato Company, Iinc...... 66 ...... 800-365-5784 ...... www.aandlpotato.net I Love Produce LLC...... 124...... 610-869-4664...... www.iloveproduce.com A&A Organic Marketing, Inc...... 145...... 831-768-0300 ...... www.aaorganic.com Idaho Potato Commission ...... 29 ...... 208-334-2350...... www.idahopotato.com/retail Louis J. Acompora Foundation...... 49 ...... 800-223-8070 ...... www.LA12.org Inline Plastics Corp...... 55 ...... 800-826-5567...... www.inlineplastics.com Alpine Fresh ...... 148...... 305-594-9117 ...... www.alpinefresh.com International Hotel Motel & Rest...... 157...... 800-272-SHOW ...... www.ihmrs.com Andrews Brothers, Inc...... 139...... 313-841-7400 IPR Fresh ...... 117...... 520-281-2351 ...... www.iprfresh.com APEAM (Avocado Producers & J-C Distributing, Inc...... 121...... 520-281-2967 Exporting Packers of Michoacan) ...... 31 ...... www.avocadosfrommexico.com Jacobs, Malcolm & Burtt, Inc...... 149...... 415-285-0400 Apio, Inc...... 6-7...... 800-454-1355 ...... www.apioinc.com Johnston Farms...... 90...... 661-366-3201...... www.johnstonfarms.com E. Armata, Inc...... 41 ...... 800-223-8070...... www.earmata.com J.R. Kelly Company ...... 83 ...... 888-344-4392...... www.jrkelly.com Associated Potato Growers, Inc...... 63 ...... 800-437-4685 ...... www.apgspud.com Kerian Machines, Inc...... 66...... 701-352-0480 ...... www.kerian.com Maurice A. Auerbach, Inc...... 123...... 201-807-9292...... www.auerpak.com Kern Ridge Growers, LLC ...... 143...... 661-854-3156...... www.kernridge.com Maurice A. Auerbach, Inc...... 45...... 201-807-9292...... www.auerpak.com Keystone Fruit Marketing, Inc...... 149 ...... 717-597-2112...... www.keystonefruit.com Ayco Farms, Inc...... 148 ...... 954-788-6800 ...... www.aycofarms.com LarMar Foods/Gariic Expressions ...... 123...... 419-874-2369 Babe Farms, Inc...... 82 ...... 800-648-6772...... www.babefarms.com LGS Specialty Sales, Ltd...... 114 ...... 800-796-2349...... www.lgssales.com Baero North America, Inc...... 94-95...... 314-692-2270...... www.baerousa.com Malena Produce, Inc...... 116...... 520-281-1533...... www.malenaproduce.com Bard Valley Medjool Date Growers Assn ..37 ...... 800-794-4424 ...... www.naturaldelights.com/retail Mann Packing Company, Inc...... 13 ...... 800-884-6266 ...... www.veggiesmadeeasy.com Basciani Foods, Inc...... 135...... 610-268-3044 ...... www.bascianifoods.com Maxwell Chase Technologies, LLC ...... 56 ...... 404-344-0796 ...... www.maxwellchase.com Blanc Industries ...... 23 ...... 973-537-0090 ...... www.blancind.com MIXTEC Group...... 34 ...... 626-440-7077...... www.mixtec.net Blue Book Services...... 103 ...... 630-668-3500 ...... www.producebluebook.com MJB Sales, Inc...... 136...... 610-268-0444 ...... www.mjbsales.com Boncheff Greenhouses ...... 83...... 416-233-6922 [email protected] Monte Package Company ...... 53 ...... 800-653-2807 ...... www.montepkg.com Booth Ranches, LLC ...... 87 ...... 559-626-7653 ...... www.boothranches.com Monte Package Company...... INSERT ...... 800-653-2807 ...... www.montepkg.com Borton & Sons Inc...... 126 ...... 509-966-3905...... www.bortonfruit.com N&W Farms ...... 71...... 662-682-7961 ...... www.nandwfarms.com Brooks Tropicals...... 75 ...... 800-327-4833...... www.brookstropicals.com N2N Global ...... 14 ...... 407-331-5151 ...... www.n2nglobal.com Canadian Produce Marketing Assn...... 68...... 613-226-4187 ...... www.cpma.ca National Raisin Company ...... 151...... 559-834-5981 Canadian Produce Marketing Assn...... 78...... 613-226-4187 ...... www.cpma.ca New York Apple Association, Inc...... 131...... 585-924-2171 ...... www.nyapplecountry.com Canon Potato Company, Inc...... 68...... 719-754-3445 ...... www.canonpotato.com New York Produce Show And Conference 15 ...... 561-994-1118 ...... www.nyproduceshow.com Capital City Fruit Co., Inc...... 78...... 515-981-5111...... www.capitalcityfruit.com Niagara Fresh Fruit Co...... 88...... 716-778-7631 ...... www.niagarafreshfruit.com CarbAmericas ...... 148 ...... 954-786-0000...... www.carbamericas.com Nokota Packers, Inc...... 65...... 701-847-2200 ...... www.nokotapackers.com Castle Rock Vineyards ...... 88 ...... 661-721-8717 ...... www.castlerockvineyards.com Northern Plains Potato Growers Assn. ....64...... 218-773-3633 ...... www.redpotatoes.net Champ’s Mushrooms...... 134...... 866-Champs1 ...... www.champsmushrooms.ca Paramount Citrus Association ...... 5...... 213-612-9957 ....http://www.paramountcitrus.com/ Chilean Fresh Fruit Assoc...... INSERT ...... 916-927-1217 ...... www.cffausa.org Pennsylvania Apple Marketing Program ..89...... 717-783-5418 ...... www.pennsylvaniaapples.org Christopher Ranch ...... 123...... 408-847-1100...... www.christopherranch.com Peri & Sons Farms ...... 32 ...... 775-463-4444 ...... www.periandsons.com Coast To Coast Produce Co...... 42 ...... 877-836-6295 ...... www.ctcproduce.com The Perishable Specialist, Inc...... 149 ...... 305-477-9906...... www.theperishablespecialist.com Columbia Marketing International ...... 129...... 509-663-1955 ...... www.cmiapples.com Peruvian Asparagus Importers Assn...... 149...... 610-284-0326 Community Suffolk, Inc...... 48...... 617-389-5200 ...... www.community-suffolk.com PMA Foundation for Industry Talent ...... 61...... 302-738-7100...... www.pmafoundation.com Country Fresh Mushroom Co...... 136...... 610-268-3043 ..www.countryfreshmushrooms.com Pom Wonderful ...... 17 ...... 800-380-4656 The Cranberry Network LLC ...... 59...... 715-422-0410 ...... www.thecranberrynetwork.com Ponderosa Mushrooms...... 136 ...... 604-945-9700 ....www.ponderosa-mushrooms.com Crystal Valley Foods ...... 148...... 800-359-5631...... www.crystalvalleyfoods.com Jerry Porricelli Produce ...... 47...... 718-893-6000 ...... www.porricelli.com Curry & Company ...... 81...... 800-929-1073 ...... www.curryandco.com PrimusLabs ...... 132 ...... 805 922-0055 ...... www.primuslabs.com Customized Brokers ...... 148...... 305-471-8989...... www.customizedbrokers.net Produce for Better Health Foundation....155 ...... 302-235-2329 ...... www.pbhfoundation.org D’Arrigo Bros. Co. of New York ...... 39 ...... 800-223-8080...... www.darrigony.com Produce Marketing Association ...... 161...... 302-738-7100...... www.pma.com Del Monte Fresh Produce...... 164 ...... 800-950-3683 ...... www.freshdelmonte.com Produce Marketing Association...... 111...... 302-738-7100...... www.pma.com Diamond Direct Farms ...... 83...... 831-476-9733 ...... www.diamonddirectfarms.com Product Protector LLC ...... 46 ...... 877-768-3287....www.productprotector.com/results Dole Fresh Fruit Company ...... 100...... 818-879-6600...... www.dole.com Progressive Marketing Group...... 149...... 323-890-8100 ...... www.pmgstrategic.net Dole Fresh Vegetable Co...... 2 ...... 800-333-5454 ...... www.salads.dole.com Red Blossom Farms, Inc...... 11...... 805-981-1839...... www.redblossom.com dProduce Man Software...... 34...... 888-PRODMAN ...... www.dproduceman.com Rocky Produce...... 141...... 313-841-7780 ...... www.rockproduce.com Eastern Propak, LLC ...... 90...... 856-881-3553...... www.easternpropak.biz Rosemont Farms Corporation ...... 149...... 877-877-8017 ...... www.rosemontfarms.com Edinburg Citrus Association...... 90...... 956-383-6619 ...... www.txcitrus.com D.M. Rothman Company, Inc...... 50...... 718-991-4920 Edinburg Citrus Association...... 35...... 956-383-6619 ...... www.txcitrus.com SAGARPA - Embassy of Mexico ...... 118-119...... 202-728-1727 ...... www.sagarpa.gob.mx Joseph Fierman & Son, Inc...... 43...... 718-893-1640 Sage Fruit Company ...... 133...... 913-239-0060 ...... www.sagefruit.com Floral Business ...... 98 ...... 561-994-1118 ....www.floralbusinessmagazine.com O. C. Schulz & Sons, Inc...... 63...... 701-657-2152 Florida Department of Agriculture ...... 73 ...... 850-488-4303 ...... www.freshfromflorida.com Ben B. Schwartz & Sons, Inc...... 140...... 313-841-8300...... www.benbdetroit.com The Florida Tomato Committee ...... 76...... 407-894-3071 ...... www.floridatomatoes.org Shanley Farms ...... 83 ...... 805-234-8533 ...... www.shanleyfarms.com Fresh Origins, LLC...... 82 ...... 760-736-4072...... www.freshorigins.com Skyline Potatoes...... 69...... 719-754-3484 Fresh Produce Association Skyline Potatoes...... 147...... 719-754-3484 of The Americas ...... 120 ...... 520-287-2707...... www.freshfrommexico.com Southern Produce Distributors, Inc...... 71 ...... 800-688-9267...... www.southern-produce.com Friedman & Broussard Produce, Inc...... 70...... 800-671-9018 Southern Specialties...... 149 ...... 954-784-6500 ...... www.southernspecialties.com Fruit Logistica ...... 51 ...... 540-372-3777...... www.fruitlogistica.de/en/ Southern Specialties ...... 83 ...... 954-784-6500 ...... www.southernspecialties.com Galaxy Nutritional Foods ...... 36 ...... 800-808-2325 ...... www.goveggiefoods.com Spice World, Inc...... 122 ...... 800-433-4979 ...... www.spiceworldinc.com Garber Farms...... 71 ...... 337-824-6328 ...... www.garberfarms.com Sun-Maid Growers of California...... 152-153 ...... 800-786-6243...... www.sun-maid.com The Garlic Company ...... 123...... 661-393-4212 ...... www.thegarliccompany.com Sunlight International Sales, Inc...... 9...... 661-792-6360 The Garlic Company ...... 30...... 661-393-4212 ...... www.thegarliccompany.com Sunshine Bouquet Co...... 93 ...... 305-599-9600 ...... www.sunshinebouquet.com Genpro Transportation Services, Inc...... 44 ...... 800-243-6770 ...... www.genproinc.com Sunview Marketing International...... 89...... 661-792-3145 ...... www.sunviewmarketing.com Giorgio Fresh Co...... 32...... 800-330-5711 ...... www.giorgiofoods.com Symms Fruit Ranch, Inc...... 132 ...... 208-459-8064 ...... www.symmsfruit.com Giorgio Fresh Co...... 134...... 800-330-5711 ...... www.giorgiofoods.com Tater Man, Inc...... 71...... 813-707-0075...... www.tatermaninc.com The Giumarra Companies...... 84...... 213-627-2900 ...... www.giumarra.com Team Produce International, Inc...... 149 ...... 800-505-0665 ...... www.teamproduce.com Gourmet Specialty Imports LLC ...... 124 ...... 610-345-1113 Thermal Technologies, Incorporated ...... 33...... 803-691-8000...... www.gotarpless.com Gourmet Trading Company...... 148...... 310-216-7575 ...... www.gourmettrading.net Triple J Produce, Inc...... 71 ...... 252-205-2936 ...... www.triplejproduce.com Gourmet’s Finest ...... 134...... 313-832-4640 ...... www.gourmetsfinest.com Uesugi Farms, Inc...... 89...... 408-842-1294 ...... www.uesugifarms.com Greenhouse Produce Company, LLC...... 116...... 888-492-1492 ...... www.greenhouseproduce.net United Fresh Produce Association ...... 57 ...... 202-303-3400 ...... www.unitedfresh.org Growers Express ...... 27 ...... 831-751-1379...... www.growersexpress.com United Fresh Produce Association ...... 146 ...... 202-303-3400 ...... www.unitedfresh.org A. Gurda Produce Farms ...... 50 ...... 845-258-4422 ...... www.agurdaproduce.com The USA Bouquet Co...... 96-97 ...... 786-437-6502 ...... www.usabq.com Hall’s ...... 66...... 701-993-8334 Vick Family Farms...... 70...... 252-291-8880...... www.vickfamilyfarms.com Harris Produce Vision...... 56...... 269-903-7481 Village Farms...... 21...... 888-377-3213 ...... www.villagefarms.com Harvest Sensations ...... 83...... 305-591-8173 ...... www.harvestsensations.com J. Roland Wood Produce ...... 71...... 919-894-2318 ...... www.eatsweetspuds.com Harvest Sensations...... 149...... 305-591-8173 ...... www.harvestsensations.com Yakima Fresh LLC ...... 127...... 800-541-0394 ...... www.yakimafresh.com Hess Brothers Fruit Co...... 89...... 717-656-2631 ...... www.hessbros.com Zespri International...... 145 ...... 650-368-2870 ...... www.kiwifruitforkids.com Highline Mushrooms...... 134...... 519-326-8643 ...... www.highlinemushrooms.com Kurt Zuhlke & Association ...... 54 ...... 800-644-8729 ...... www.producepackaging.com

160 PRODUCE BUSINESS • OCTOBER 2012 PMA A2.qxd:Layout 1 9/19/12 2:24 PM Page 1 Blast.qxd:Layout 1 10/1/12 4:49 PM Page 1

BLAST FROM THE PAST sharing common goals

o say the late Chandler Copps, who passed away early last year, been involved for almost 20 years, and I can attest to the advantages of was a legendary figure in the produce industry would be a vast these meetings,”he says.“Acombination of good camaraderie and good Tunderstatement. As the great-grandson of E.M. Copps, much leadership has carried us through all of these years. Our bond came of his early career was spent working with his family’s business — the from our shared experiences in the produce industry.Wewould discuss Stevens Point, WI-based Copps Distributing Co., which continues to anything that was affecting us and our businesses. We walked away operate 26 stores in the state. Among many volunteer positions and much smarter and greatly benefited from the meetings.” numerous awards and accolades, he also served as president of the The photo above, sent in by Jeffrey Abrash of Andrew Brothers Inc., Produce Packaging and Marketing Association (now the Produce in Detroit, MI, shows a gathering of the Copps Share Group’s United Marketing Association) and helped steer the organization toward a Distributor Council in the early 90s at the United Fruit & Produce Inc. greater retail emphasis. facility in St. Louis. Pictured from left to right are: Frank Wiechec, Yet his most lasting contribution to the produce industry was most Hunter Bros. Inc., Philadelphia, PA; Herb Abrash (Jeffrey’s father), certainly the Copps Share Groups, a number of networking groups Andrew Brothers Inc., Detroit, MI; Stephen D’Arrigo, D’Arrigo Bros. developed for leaders in different areas of the produce industry. These Co. of New York Inc., Bronx, NY; Charlie Gallagher and Stanley groups brought together non-competing members of the same indus- Greenspan, United Fruit & Produce Inc., St. Louis, MO; Chandler try who could share their common interests and challenges in the Copps, facilitator for the United Distributor Council; and Alan Siger, business. Some groups were devoted to retail, while others focused on Consumers Produce Co. Inc. of Pittsburgh, Pittsburgh, PA. the fresh-cut, wholesale, distribution, and specialty retail fields. Copps’ hard-held belief in open, effective lines of communication Charlie Gallagher, (pictured at center in the photo above) a member continues to this day as his legacy lives on as the share groups are now of the United Distributor Council and chairman of the board for United facilitated by Jim Prevor, founder and editor-in-chief of PRODUCE Fruit & Produce Inc., emphasizes the importance of these groups.“I’ve BUSINESS magazine.

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

162 PRODUCEBUSINESS• OCTOBER 2012 PBH PeriNews.qxd:Layout 1 9/14/12 3:18 PM Page 1

PerishableNews.com is an outlet for news about all the perishable categories typically featured in a retail store: DAIRY, DELI, BAKERY, MEAT & POULTRY, SEAFOOD, PRODUCE, FLORAL Plus we cover top-level happenings in Retail and Foodservice that are of special interest to a perishable food executive at a supermarket or other retail chain and at a foodservice chain operation or foodservice distributor. Del Monte.qxd:Ad 9/14/12 3:27 PM Page 1