Produce Business April 2010

Reader Service # 7 APRIL 2010 • VOL. 26 • NO. 4

42 FEATURES PROCESSED GUACAMOLE EMERGES AS A COVER STORY GROWTH OPPORTUNITY FOR RETAILERS...... 32 THE INS & OUTS OF FOODSERVICE Thanks to high-pressure packaging, prepared guacamole tastes better and lasts longer. BUYING CONTRACTS ...... 22 Contracting the right items the right THE DEAL FROM DOWN UNDER ...... 38 way will keep growers, shippers and The big guys in the Down Under fruit deal plan for a profitable season. buyers out of trouble and in the green. PLENTIFUL SUPPLIES FORESEEN FOR SOUTHERN FRUITS ...... 42 The popularity of sweet Southern fruit continues to soar, while much of the crop rebounds from the freeze.

COMMENTARY EIGHT TIPS FOR SPRING GRAPE SALES ...... 46 THE FRUITS OF THOUGHT Staying in communication with your suppliers and smart merchandising Daring To Challenge Food Safety Dogma ..8 techniques will guarantee a sweet grape deal.

RETAIL PERSPECTIVE MAKE WAY FOR MUSHROOMS ...... 51 Three Cs Of Business...... 94 With creative usages and cost-saving techniques, mushrooms are turning up more frequently on menus all across the board. EUROPEAN MARKET Online Grocery Purchasing Works Across The Pond. Is It Feasible Stateside? ...... 96 DEPARTMENTS MERCHANDISING REVIEWS: Eight Ways To Sweeten Sweet Onion Sales ...... 52 Stocking truly sweet onions, offering them in more than one SKU and IN EVERY ISSUE promoting their many usages are just a few ways to make sales bloom. THE QUIZ ...... 4 Top Tips For Merchandising Tomatoes...... 62 WASHINGTON GRAPEVINE ...... 6 Retailers can help sway customers in tomato purchases.

RESEARCH PERSPECTIVES ...... 12 Merchandising Melons For Maximum Sales...... 72 When melons are plentiful, they move fast. But don’t count out year-round sales. COMMENTS AND ANALYSIS ...... 13 DRIED FRUIT AND NUTS: PRODUCE WATCH ...... 14 Effective Walnut Marketing ...... 88 Retailers shouldn’t wait for the holidays to promote walnuts FLORAL WATCH ...... 91 as a tasty, healthful snack and ingredient.

BLAST FROM THE PAST ...... 98 FLORAL & FOLIAGE MARKETING: Selling Licensed Floral Products ...... 92 INFORMATION SHOWCASE ...... 98 Cartoon celebrities have sold carrots, Clementines and cherries in produce departments and bakery profits from all those character-laden cakes. What does it take for floral departments to benefit from selling licensed products? SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE PUNDIT As South African Grapefruit Enters The U.S. Market, Who Will Step In To Build Year-Round Demand?...... 10 REGIONAL PROFILE: LOS ANGELES Los Angeles Looks Toward The Future ...... 78 Focusing on emerging demographics and serving customers in new and improved ways ensure the LA Market remains at the top of its game.

Spaghettini Grill And Jazz Club ...... 84 Produce takes center stage at this long-time neighborhood gem. 62 Henry’s Market ...... 86 Produce plays an important role at this Southern California staple.

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.

APRIL 2010 • PRODUCE BUSINESS 3 PRODUCE QUIZ

APRIL 2010 • VOL. 26 • NO.4 THIS MONTH’S WINNER: President & Editor-in-Chief •JAMES E. PREVOR [email protected]

Publisher/Editorial Director •KEN WHITACRE Joe Sferrazza Joe Sferrazza has been in the produce [email protected] Regional Sales Manager industry since 1991, and with Supreme Cuts Special Projects Editor •MIRA SLOTT Supreme Cuts LLC for a little more than three years. “It seems [email protected] Mahwah, NJ like I’ve been in the business forever,” he Assistant Editor •AMY SHANNON admits. “The passion people have working [email protected] with produce — it’s amazing. There’s always great energy.” Assistant Editor •JENNIFER LESLIE KRAMER According to Sferrazza, Supreme Cuts is [email protected] How To Win the leading supplier of snipped green beans Circulation Manager •KELLY ROSKIN To win the PRODUCE BUSINESS Quiz, the first in the United States and also an importer of [email protected] thing you have to do is enter. The rules are specialty produce. “We sell primarily to Executive Assistant •FRAN GRUSKIN simple: Read through the articles and regional foodservice operations such as [email protected] advertisements in this issue to find the Wegmans, Acme Markets, Meijer, Wakefern, answers. Fill in the blanks corresponding Bozzuto’s and King Kullen. European Bureau Chief •ROBERT ZWARTKRUIS to the questions below, and either cut along When he’s not focused on fresh produce, [email protected] the dotted line or photocopy the page, and Joe often finds himself in the kitchen. “I like send your answers along with a business Production Director • DIANA LEVINE [email protected] card or company letterhead to the address to cook. It’s relaxing,” he says. “And when the weather cooperates, I like to spend time listed on the coupon. The winner will be Production Leader • JACKIE TUCKER chosen by drawing from the responses outdoors, even in the winter. For instance, received before the publication of our on Valentine’s Day, my girlfriend and I went Production Department FREDDY PULIDO June issue of PRODUCE BUSINESS. The winner walking underneath frozen waterfalls. It was must agree to submit a color photo to be cold out, for sure, but we had fun.” JOANNA ARMSTRONG published in that issue. Director of Online Communications JASON KAHAN WIN A DEEP FRYER Trade Show Coordinator •JACKIE LOMONTE Remember the days when Mom made homemade French fries or fried [email protected] chicken? Here is a way to get those tastes back in your home — plus you Contributing Editors can tempura veggies and other dishes. With this Stainless Steel 1,800-watt MEREDITH AUERBACH,CAROL BAREUTHER, deep fryer with a 2-lb.-plus capacity and a 1-gallon removable oil contain- CHUCK GREEN,KEN HODGE,JACKIE LIEBERMAN, er, you can quickly and easily prepare fun dishes for the whole family. PRISCILLA LLERAS,JODEAN ROBBINS DUARTE, BRYANT WINES,JON VAN ZILE QUESTIONS FOR THE APRIL ISSUE Advertising 1) The Zespri kiwifuit season begins in which month?______ERIC NIEMAN,ASSOCIATE PUBLISHER [email protected] 2) How many people have said ‘Hello’ to Dole’s Salad Guide? ______SANDY LEE [email protected] BILL MARTIN [email protected] Colleen Morelli 3) Maurice A. Auerbach, Inc. markets what brand of produce? [email protected] ______ELLEN ROSENTHAL [email protected] Floral Department Marketing 4) What is the 800-number for California Sun Dry Foods? ______E. SHAUNN ALDERMAN [email protected] Send insertion orders, payments, press 5) What company owns the trademark for Champagne mangos? ______releases,photos, letters to the editor, etc., to: PRODUCE BUSINESS ______P.O. Box 810425 Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 6) Pura Vida Farms will be exhibiting at what United booth number? E-mail: [email protected] PRODUCE BUSINESS is published by Phoenix Media Network, Inc. This issue was: ❏ Personally addressed to me ❏ Addressed to someone else James E. Prevor, Chairman of the Board P.O. Box 810425 Boca Raton, FL 33481-0425 Name ______Position ______Phone: 561-994-1118 Fax: 561-994-1610 Company ______Entire contents © Copyright 2010 Phoenix Media Network, Inc. Address ______All rights reserved. Printed in the U.S.A. City______Publication Agreement No. 40047928 State ______Zip ______Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: APRIL QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

4 PRODUCE BUSINESS • APRIL 2010 Reader Service # 76 WASHINGTON GRAPEVINE A report on the inside happenings of government.

SUBMITTED BY TOM STENZEL, PRESIDENT AND CEO • UNITED FRESH PRODUCE ASSOCIATION Get Involved, Stay Involved

t’s April and that means one thing: We’ll explore the recent Healthy Foods increasing sales and benefiting regional and Time for the United Fresh show. We in Schools Act introduced last month by local produce businesses. welcome those of you joining the indus- Sen. Barbara Boxer, D-CA, looking closely at In September, United Fresh will contin- try in Las Vegas and encourage those its potential to not only improve the nutri- ue those discussions and many more like members that couldn’t make it out this them, welcoming concerned and active Iyear to remain engaged in the continued members of the industry to the nation’s cap- development of the produce industry. Progress can’t be ital for the annual Washington Public Policy If you can’t join the industry leaders Conference. We’ll build off of last year’s meeting in Las Vegas, you can still experi- made without your record attendance and take our views on ence the show via United Fresh TV. This food safety, child nutrition, labor, immigra- new media-rich website will showcase some involvement. You are tion and more directly to lawmakers. No of the highlights from each day of the Unit- the ones on the middleman, no letters, just face-to-face time ed show. Just go to www.unitedfresh.tv with the members of Congress who have beginning April 21 and view the highlights ground, dealing the power to change and improve the way from the convention. What’s more, you’ll you do business. see a live broadcast as United honors the every day with the But progress can’t be made without your top retail produce managers of the year, involvement. You are the ones on the Thursday, April 22, 4pm EST, 1pm PST. rules and regulations ground, dealing every day with the rules While we’re in Las Vegas, we will discuss created for you in and regulations created for you in Washing- many of the key players, factors and outside ton. Not having a solid input on their cre- influences and their corresponding effects Washington. Not ation puts you at a clear disadvantage. on the produce industry. These issues While we work tirelessly with allies old and include innovative technology, labor and having a solid input new on Capitol Hill to tell your story, we immigration reform, child nutrition policy, won’t ever be as effective as we can be with- trade opportunities and barriers, food safety on their creation out your help. regulation and USDA inspection. Additional- puts you at a clear Every day of the year, United Fresh is ly, even seemingly outside matters, such as making a difference for our industry in climate change and health care reform, can disadvantage. While Washington, D.C. United’s leadership, mem- impact our industry, thus requiring engage- bers and staff work very effectively to reach ment from our members and volunteer we work tirelessly policymakers and regulators who can shape leaders at annual gatherings like United the future of the produce industry. None of Fresh 2010. Quite simply, our gatherings are with allies old and this happens, however, if you’re not here to where the first steps are taken in moving new on Capitol Hill make it so. Sometimes it’s easy to focus only opinion into action. on your fields, packinghouses, processing At the Las Vegas convention, we’ll talk to tell your story, we facilities or your bottom lines. The prob- with Eric Goldstein and Jorge Collazo from lems and process of Washington politics the New York Department of Education’s won’t ever be as seem far removed from your operations. To SchoolFood. Together, Goldstein and Collazo effective as we can the thousands of industry leaders who are oversee the creation of school meals for engaged through United Fresh events, pro- more than 850,000 students in more than be without your grams and membership, thanks for helping 1,600 schools every school day in New York to keep our industry competitive and prof- City. We’ll explore how the two have been help. itable. able to bring healthy, fresh fruits and veg- Keep in touch with PRODUCE BUSINESS and etables to the largest school district in the with United Fresh in the coming months for nation through the purchase of 99 fruit and tional quality of school meals and health of more information on the Washington Public vegetable salad bars, as well as innovative American school children, but also its Policy Conference, and we look forward to menu design. impact on the produce industry in terms of working side by side with you in September.

6 PRODUCE BUSINESS • APRIL 2010 SAVE THE DATE!

NOVEMBER 9-11, 2010 NEW YORK CITY

CONTACT INFORMATION:

FOR REGISTRATION FOR BOOTH SALES EASTERN PRODUCE COUNCIL PRODUCE BUSINESS AND SPONSORSHIPS Fran Gruskin John McAleavey Ken Whitacre Ph: 212-426-2218 Eric Nieman, Ellen Rosenthal, Ph: 973-564-6295 Ph: 561-994-1118, ext 101 Jennifer Jordan, E-mail: Bill Martin, Sandy Lee, E-mail: E-mail: [email protected] Shaunn Alderman [email protected] [email protected] Ph: 212-426-2218 E-mail: [email protected] THE FRUITS By James Prevor OF THOUGHT President & Editor-in-Chief Daring To Challenge Food Safety Dogma

ood safety, like motherhood and apple pie, is a virtue that It is fair to say that the whole incident indicated the limitations is almost impossible to speak out against. One photo, a sin- of “engagement strategy” — the approach that suggests the industry gle video clip, a poignant interview with anyone who has should get its opponents involved on its various boards and commit- been injured as a result of a food safety incident is enough tees with the hope that mutual understanding can flower. Though it to set up the dynamic where any consumer, regulator or has become a truism to say that one should keep one’s friends close Flegislator watching or reading the stories begins to think, “some- and one’s enemies closer, the approach’s effectiveness at changing thing must be done.” policy depends, crucially, on all parties actually caring about the The public policy implications of this dynamic are significant same issue. and turbocharged by the fact that few companies or executives are Unfortunately, groups such as CSPI don’t so much care about likely to speak out against it. There is little upside for anybody to food safety as they care about promoting a certain type of society in come to be identified as the “guy who doesn’t want to spend money which elites make decisions for us all and in which the sphere of to make his food safe.” personal autonomy is reduced as the federal government becomes Though it is true that more dispassionate observers recognize progressively more powerful. that food safety is a “good” that costs money This mind-set is demonstrated clearly by and that the pursuit of food safety is the pursuit programs such as “The Produce Safety Project of one particular “good” that must be measured at Georgetown University.” To the shameless against expenditures to obtain other desirable The emotional disregard of the academic reputation of goals, this wonkish attitude with its dour Georgetown University, the school permits an requirement for assessment of costs and bene- power of the outright advocacy group to usurp the good fits tends to get lost in the shuffle. It is the tug- name and reputation of the university. The ging on heart strings that drives this issue. argument for “project” details its mission on its web site: “The From a policy standpoint, this is not a good Produce Safety Project at Georgetown University thing. After all it means that as a society we are food safety seeks the establishment by the Food and Drug avoiding the hard choices. How much money Administration of mandatory and enforceable are we prepared to spend to save a life or avoid makes the industry safety standards for domestic and imported fresh an illness or prevent discomfort? We are not produce, from farm to fork.” really weighing the merits of, say, spending our something of a So it was not surprising that the project pub- money on safer highways versus food safety. lished a report claiming that foodborne illness This results in a misallocation of resources and “mark” for those is costing the United States $152 billion a year, makes us poorer as a society than we need of which foodborne illness due to produce was to be. interested in supposedly costing $39 billion a year. What vir- The emotional power of the argument for tually the entire mass media missed in report- food safety also makes the industry something promoting a ing the story was to explain that this “project” of a “mark” for those interested in promoting a wasn’t just devoted to the pursuit of truth but particular ideology. We saw this very clearly particular ideology. was an advocacy group promoting a specific when the Center for Science in the Public Inter- policy — enhanced FDA authority. The study est (CSPI) came out with its “Ten Riskiest is best seen not as a legitimate analysis but as a Foods” report. The report was bizarre — not differentiating between scare tactic designed to get headlines that will promote the “pro- heavy-consumption items, such as leafy greens, and items rarely ject’s” mission. consumed, such as oysters... it didn’t distinguish between produce Of course, some fight the good fight. The Alliance for Food and items, such as potatoes, and, say, home-made potato salad, and it Farming paid for a study that tried to pinpoint the degree to which didn’t distinguish between time periods, such as food safety prob- foodborne illness related to produce has anything to do with the lems before modern controls were implemented and after, as with farmer or processor. Turns out the answer is: Not very often. So the establishment of the California Leafy Green Products Handler while urging farmers and processors to redouble food safety efforts, Marketing Agreement. the lesson of the study is that cooks at restaurants, institutions and CSPI’s attack on the industry was especially wounding to the at home need to be more vigilant. trade because Caroline Smith DeWaal, director of food safety at Such a prosaic message is probably correct but uninspiring to CSPI, serves on the board of advisers of the Center for Produce Safe- those looking to transform society. So don’t look for the mass media ty. So she knew better. to pay much attention. pb

8 PRODUCE BUSINESS • APRIL 2010 Reader Service # 4 From The Pages Of The Perishable Pundit As South African Grapefruit Enters The U.S. Market, Who Will Step In To Build Year-Round Demand?

From Jim Prevor’s Perishable Pundit February 19, 2010

ndrew Southwood used to be the vice president of business market, this is the first entry for South African grapefruit. To be able development at Fisher Capespan and then founded freshXpres- to export to the United States, South African citrus-producing regions A sions, an organization that bills itself as providing “Management have to be certified as “black-spot free,” and earlier surveys found that Solutions for Growth,” a sort of outsourced management concept to help the traditional growing areas in the Eastern part of South Africa were companies with stretched management teams. not black-spot free. This Northwestern region comprising Northern Now he sends word that a new player is entering the U.S. grape- Cape, Orange Free State and North West Province is far from those tra- fruit market: ditional growing regions. FISHER CAPESPAN EXCITED THAT SOUTH AFRICAN GRAPE- The grapefruit industry has suffered in recent years. A fruit tradition- FRUIT IS PERMITTED U.S. MARKET ACCESS ally eaten at breakfast, it has not caught on with a younger generation On the 3rd of February, 2010, the Animal Plant and Health Inspection that doesn’t sit down to eat breakfast. Then, as a double whammy, con- Service (USDA department) announced that it had approved 16 new magis- cern over drug interaction led to a decline in consumption among the terial districts in three South African provinces as “black spot free.” With older clientele, who were the core demographic. this status, citrus produced in these areas is We have no doubt the fruit will do well now permitted access to the USA, provided all initially. There is limited availability during protocols are correctly followed. the South African market window, and the The new areas, located in the Northern Why couldn’t every South African volume will be moderate. Per- Cape, Orange Free State and North West haps, however, the prospect of year-round Province, are set to become good supply sources McDonald’s supply could start to lead to reforms that particularly for Star Ruby grapefruit, which might lead to a resurgence of demand. does extremely well in the dry, desert-like grow- breakfast meal There is no national grapefruit marketing ing conditions. The quality of Star Ruby pro- effort, and one wonders if one couldn’t be set duced in the Northwest is well known, with the offering come with up along the lines of the watermelon and fruit showing excellent internal red color, high mango boards, where product from many Brix values and a thin skin. Add to this fruit a choice of the states and countries are all included. that regularly falls into the size 30-36 count Perhaps also there could be an outreach range, and it is not difficult to see why Fisher deep-fried hash to McDonald’s. Today’s grapefruit varieties Capespan is excited at the prospect of adding are delicious and require no sweetener — South African grapefruit to its Southern Hemi- browns it currently not like Grandma’s grapefruit, covered sphere citrus offering. offers or a lightly with sugar or honey — and McDonald’s According to Marc Solomon (president of has the youth audience and has shown a Fisher Capespan), volumes likely to be shipped grilled half- desire to at least offer healthful options. to the USA this year will be moderate. The rea- Why couldn’t every McDonald’s breakfast sons for this are that many of the grapefruit grapefruit? meal offering come with a choice of the orchards are still young and not in full produc- deep-fried hash browns it currently offers tion, plus growers in these regions do not have or a lightly grilled half-grapefruit? It is not experience with the protocols required. “As the orchards mature and experi- as portable as a car-oriented culture might like, but an axiom of nutri- ence is gained in producing fruit for the USA, volumes could rise to over tionists is that one should pay attention to one’s food — not eat and 500,000 cases (15kg) in the next five years,” he said. read or eat and drive. This is in sync with the cultural trend to treat South African grapefruit will be available in the U.S. from the end of one’s food seriously. Perhaps McDonald’s will want to stake a claim in May through to the end of July, at a time when domestically produced this space. grapefruit is usually available in limited volumes. The first few arrivals are How about it McDonald’s? A pilot program in one city? You could expected on containers, and once the conventional vessels start arriving in offer a healthful option and, quite possibly, reinvigorate a whole industry. mid-June, will accompany the rest of the South African citrus offering. That is The Road to Sustainability on steroids, and think about the video: For retailers, particularly on the East coast of the U.S., this develop- Grateful farmers in Florida saying you saved the business, grateful farm- ment is good news. With the growing strength of the summer citrus cate- ers in South Africa saying you created new markets to help a teeming gory, the addition of a high quality red grapefruit will further boost country provide jobs and promote exports. If anyone in Oak Brook can summer citrus profits! share the dream, e-mail us here and we’ll get you in touch with everyone Although South African Navels and Clementines have been on the you need to make it happen.

10 PRODUCE BUSINESS • APRIL 2010 PRODUCE BUSINESS is accepting nominations for its Sixth 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, 1970).

To nominate someone, please go to www.producebusiness.com and click on the 40 under Forty icon, or fill out this form by March 1, 2010, 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 the back of this sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______

Fax back to 561-994-1610 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] RESEARCH PERSPECTIVE

BY DAN WITTERS, RESEARCH DIRECTOR, GALLUP-HEALTHWAYS WELL-BEING INDEX Healthy Eating in America: A Work In Progress

s many Americans set an eye on more are important for policy makers healthful eating in 2010, Gallup- and consumers alike, as this Healthways Well-Being Index data marked elevation of access to reveals mixed results on two key met- affordable produce serves as an rics in 2009 compared with 2008. important vanguard to health- WhileA the percentage of Americans saying ful eating habits. Americans they ate healthfully all day yesterday who say they have easy access improved slightly in 2009 (to 66.4 percent to affordable fruits and vegeta- from 65.9 percent in 2008), the percentage bles are more likely to report reporting eating five or more servings of fresh having eaten healthfully the fruits and vegetables on at least four days in day before and to have con- the previous week slipped to 55.6 percent in sumed at least five servings of 2009, down slightly from the 56.4 percent Charts courtesy of Gallup-Healthways Well-Being Index fruits and vegetables at least measured the year before. tion. The 10 states with the greatest and most Gallup and Healthways asked at least consistent diet of fruits and vegetables carry 1,000 randomly selected Americans each day, an average obesity rate of 24.6 percent, nearly 350 days a year, about their eating habits. two full percentage points lower than the Specifically, respondents are asked to report national 2009 rate of 26.5 percent. The 10 on whether they ate “healthy all day yester- states with the least robust produce diet, how- day” and, out of the last seven days, how ever, carry an average obesity rate of 28 per- many days did they “have five or more serv- cent. If the Bottom 10 worst-eating states had ings of fruits and vegetables.” the same obesity rate as the Top 10 best-eat- At the state level, a substantial range exists ing states, close to 1.8 million fewer people in the consumption of fruits and vegetables, with the best-eating states typically found in four days per week than those who say they the West and Northeast, while the worst eating do not have easy access. is measured among states found in the Great Given these results, the policy implications Plains. Vermont, followed by Wyoming, Maine, for leaders who care about wellness may be New Hampshire, and Hawaii are the only five significant, as it appears that a substantial states where at least 60 percent of residents means of having an impact on Americans’ have at least five servings at least four days healthful eating habits — and important corol- each week. In contrast, the states with the poor- laries, such as obesity — is likely within our est produce eating habits are led by Nebraska, would be obese in those 10 states alone. society’s grasp through enhanced portals of with just 50.4 percent of residents exhibiting The good news for Americans seeking to disseminating affordable, accessible produce to substantive produce consumption, followed by improve their healthful eating habits is that the American public. Oklahoma, North Dakota, Minnesota, South the perceived affordability of fruits and veg- Dakota and Indiana. etables is on the rise. In 11 out of 12 months Survey Methods: For the Gallup-Healthways Well-Being Consumption of fresh fruits and vegetables of 2009, Americans were more likely than in Index, Gallup is interviewing no fewer than 1,000 U.S. adults nationwide each day and at least 350,000 surveys in also plays an important role in obesity reduc- 2008 to say that it is easy to get affordable each calendar year, yielding results with a maximum expect- fruits and vegetables in the city or area where ed error range of ±0.2 percentage points. The margin of sampling error for most states is ±1-2 percentage points, but Gallup is a worldwide polling and consulting firm that they live, and for the entire year, 91.9 percent has studied human nature and behavior for more than is as high as ±3.5 percentage points for smaller states such 70 years. Healthways is the leading provider of special- of respondents said this was the case, com- as Wyoming, North Dakota South Dakota, and Hawaii. ized, comprehensive solutions helping millions of Interviews are conducted with respondents on landline tele- people maintain or improve their health and well-being. pared with 89.7 percent in 2008, a statistical- phones and cellular phones, in English and in Spanish. To Find them at www.gallup.com. ly significant increase. These improvements learn more, please visit well-beingindex.com.

12 PRODUCE BUSINESS • APRIL 2010 COMMENTS AND ANALYSIS

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

t is well known that one problem with research is getting accurate numbers — numbers that represent real behavior urvey research often tells us more about rather than numbers that reflect what consumers think best to say. Yet perhaps what people think is best to say than what evenI more challenging is drawing the right they do, and typically provides too little policy implications from a given set of facts. S In this article, we see highlighted an inter- information to create clear policy options. esting result from the Gallup-Healthways survey: “Americans who say they have easy access to affordable fruits and vegetables are cult to acquire. Those who don’t care... well, duce consumption is the key here, but don’t more likely to report having eaten healthy the they won’t care. think the study proves this. To name just one day before and to have consumed at least five Imagine a survey that asked people alternative perspective, perhaps high produce servings of fruits and vegetables at least four whether they had easy access to an Orthodox consumption correlates with some unknown days per week than those who say they do Jewish Synagogue in their neighborhood. We third variable, say high education or high not have easy access.” can predict that in neighborhoods with such income or an aggressive attitude toward It is easy to leap from that survey result to access, there will be a much higher percentage health, and perhaps these characteristics lead a policy recommendation that we could help of Orthodox Jews than in neighborhoods both to high produce consumption and many the cause of healthy eating by increasing the where there is no such access. To leap from other things: An aggressive exercise program, availability of outlets that sell “affordable that fact to a conclusion that if we merely frequent check-ups, discipline in taking rec- fruits and vegetables.” open more Orthodox synagogues, many more ommended medications and following doc- Yet, though that policy choice is a possible people will become Orthodox Jews has the tor’s orders, avoidance of saturated fats, etc. deduction from the research, it is not the only phenomenon backwards. The Orthodox Jews Perhaps it is one or several of these attributes possible one or even a particularly likely one. move to be near Orthodox synagogues — the that lead to lower obesity levels and, sacré This is because a survey is different from a presence of such houses of worship almost bleu, if we didn’t change any of these items controlled test. If we took a large group of certainly does not lead to large numbers of and just persuaded people to eat more fresh people who were selected to be representative conversions. produce, they might actually gain weight due of the American population based on race, Another danger in reading survey research to consuming more calories. ethnicity, religion, income, psychological atti- is to look at one variable and then confuse Finally, asking consumers questions about tudes, eating habits, etc., and then randomly coincidence with causation. So, although the number of servings they ate or if they ate assigned them to live in two different areas, when the Gallup-Healthway’s research team healthy is inherently problematic, because we one with easy access to affordable fresh pro- identifies an interesting correlation, even if it just have no idea what consumers mean by duce and one without, we actually have no is music to the collective ears of the produce these terms and how their interpretations of idea what would happen to their diets. industry, we need to exercise caution. Here is these words have changed over time. Perhaps those who currently eat lots of the quote: The Gallup-Healthways partnership does fresh produce would go out of their way to “Consumption of fresh fruits and vegeta- exceptional work. Both organizations are get it or switch to, say, frozen produce with bles also plays an important role in obesity careful to include both cell phone and land- little health impact. Or, perhaps the very pres- reduction. The 10 states with the greatest and lines; they use random-digit dialing and offer ence of these consumers in the community most consistent diet of fruits and vegetables Spanish-speaking interviewers. They include would lead local retailers to carry more fresh carry an average obesity rate (defined as a Alaska and Hawaii and have a methodology produce, or the presence of a high produce- body-mass index that is equal to or greater that includes many callback attempts to reach consumption demographic in the area would than 30) of 24.6 percent, nearly two full per- respondents who were unavailable on the ini- encourage everything from menu changes at centage points lower than the national 2009 tial call. In many ways, they are the gold local restaurants to new retail entrants in the rate of 26.5 percent. The 10 states with the standard in telephone research of this type. market. least robust produce diet, however, carry an The issue is that survey research is inherently In other words, people to some extent self- average obesity rate of 28 percent, over three limiting. It often tells us more about what select where they live, and a vegan who will points higher than what is found for the people think is best to say than what they do, only eat organic fresh produce is unlikely to 10 best.” and typically provides too little information to move into an area where such items are diffi- We would like to believe that fresh pro- create clear policy options.

APRIL 2010 • PRODUCE BUSINESS 13 PRODUCE WATCH TRANSITIONS L&M COMPANIES INC. SUMMERIPE WORLDWIDE INC. RALEIGH, NC REEDLEY, CA Pat Hansen was hired as potato and onion sales Mark Grijalva was hired as a national account rep- and operations manager. He brings a wealth of resentative for Mountain View Fruit Sales. He will expertise and experience pertaining to every aspect represent the Summeripe brand and its programs. of the produce supply chain. He previously worked With 30 years of industry experience, he has held with Peri & Sons Farms. He has worked in sales, various management and training positions, includ- managed packing facilities and owned a transporta- ing retail management and training, management tion company. of wholesale procurement and distribution of fresh produce to retailers.

Keith Horder was hired as director of business NATIONAL POTATO COUNCIL development, a newly created position at L&M’s WASHINGTON, D.C. Washington business unit. He brings 40 years of Roger Mix was elected as president. He previously industry experience and served in executive posi- served as the NPC’s vice president of finance and office tions in all aspects of the industry for Safeway, procedures. In 2007, he was named vice president of Supervalu, Great Atlantic and Pacific Tea Company, environmental affairs. Mix is a fourth generation pota- Rainier and Turbana. to grower with Mix Farms, a family-owned business based in Center, CO. His top legislative priorities over the next year include addressing food safety, sustainability and climate change.

FRUIT PATCH NORTHERN PLAINS DINUBA, CA POTATO GROWERS ASSOCIATION Sabrina Mak was appointed to the sales and market- EAST GRAND FORKS, MN ing team. Her duties will include developing business Gregg Halverson was elected chairman. He is cur- and category management tools. For the past five rently the president and CEO of Black Gold Farms, years, she has served as the director of trade marketing Grand Forks, ND. His primary duty will be to foster and director of national programs for Ballantine positive industry growth in the Northern Plains. He Produce, where she developed retail programs that has been involved in leadership positions on the focused on demand and consumer needs. NPPGA’s Research Committee. Reader Service # 35 Reader Service # 81

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]

14 PRODUCE BUSINESS • APRIL 2010 PRODUCE WATCH TRANSITIONS RIVER RANCH FRESH FOODS LLC Juanita Machuca was promoted to salesperson. SALINAS, CA She has worked for River Ranch for five years as Larry Narwold was hired as Eastern regional busi- sales coordinator. Her new duties will include man- ness manager. His duties will include working aging key retail private label and foodservice closely with customers, managing and growing the accounts and focusing on creating and supporting River Ranch retail and foodservice business new business. throughout the region. With more than 35 years of industry experience, he previously worked for Tanimura & Antle, Green Giant Fresh and NationFresh. Matt Lyons was promoted to sales manager. His Michele Hawkins was hired as senior financial duties will include managing a 9-person sales staff analysis manager. She brings several years of expe- and overseeing day-to-day sales functions. He rience from Chiquita Brands/Fresh Express. She worked for River Ranch for 18 years in several posi- will work closely with the sales and marketing tions, including agricultural operations coordinator, department to assist in managing and developing plant scheduler and regional procurement and customer portfolios and identifying areas of oppor- logistics manager and broccoli sales commodity tunity. She will also manage several financial pro- manager. jects including customer profitability, SKU rational- ization and plant cost efficiencies. NEW PRODUCTS TRANSPARENT BARRIER FILM TECHNOLOGY FIVE FRESH HERB AND SPICE BLENDS Rollprint Packaging Products Inc., Addison, IL, added Gourmet Garden, Folsom, CA, introduces five fresh ClearFoil X and ClearFoil Z to its transparent ClearFoil flavors of Gourmet Garden Fresh Blends. line. The clear, ultra-high barrier packaging options can Mediterranean, Mexican, Moroccan, Thai and Steak now replace aluminum foil structures for demanding flavors help families cook authentic, restaurant- applications. The films can be used for moisture and quality meals in the kitchen or on the grill. The oxygen-sensitive food applications, and also improve fresh herb and spice blends are packaged in 2.8- product visibility. ounce tubes.

Reader Service No. 300 Reader Service No. 301 Reader Service # 27

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]

APRIL 2010 • PRODUCE BUSINESS 15 PRODUCE WATCH ANNOUNCEMENTS MUCCI PAC PRODUCES RUSTICO DMTB NAMED BROKER OF THE YEAR SWEET LONG PEPPERS Des Moines Truck Brokers Inc., Norwalk, IA, cele- Mucci Pac, Kingsville, ON, Canada, is now offering brated its 40th anniverssary and was recognized Rustico sweet long peppers. Positive results on last as the No. 1 truck broker in the nation. The year’s trials translated to a full planting this year. National Association of Small Trucking Customer demand is already exceeding supply and Companies (NASTC) presented DMTB with the the company’s expectations. Sweeter than bell pep- 2009 National Broker of the Year Award. Jimmy pers, Rustico sweet long peppers have thicker walls and are popular for grilling, DeMatteis from DMTB was present to receive the roasting or eating raw. They are currently available in 2- and 3-packs as well as award, which was based on highest credit worthi- a 5-lb. bulk pack. Reader Service No. 302 ness, reputation and professional integrity. Reader Service No. 303

MISSION PRODUCE OPENS RIPE CENTER SUNNYRIDGE OFFERS ORGANIC BLUEBERRIES Mission Produce, Oxnard, CA, held the grand opening of its SunnyRidge Farm, Winter Haven, FL, has expanded latest ripe center in Toronto, Ontario, Canada. It is Mission’s into the organics market with its new organic blueber- first avocado ripening facility in Canada, but the eighth facil- ries. The company’s organic blueberries will be ity overall, adding to ripening plants already established in sourced from company-owned and contract-grower California, Colorado, Texas, New Jersey, Illinois, Georgia farms beginning with Florida production in March and and Washington. The new facility increases Mission’s conti- continuing through August. They will be harvested on nental distribution network where avocados are received, 200 total acres. The company expects to ship 5 million inventoried, ripened and delivered to customer distribution pounds during the 2010 domestic season, most of centers. Reader Service No. 304 which will be sold to grocery and club store retailers. Reader Service No. 305

MONTEREY MUSHROOMS OCEAN MIST CREATES POS WEB PORTAL DONATES TO HAITI RELIEF Ocean Mist Farms, Castroville, CA, is offering a Monterey Mushrooms Inc., Watsonville, CA, donat- variety of new POS material to help share arti- ed $53,040 to the American Red Cross for the Haiti choke information with consumers. The full set Earthquake Relief Fund. Monterey employees con- of materials includes posters, price cards, tributed $26,520 to the relief fund, and Shah recipe cards and other collateral in various Kazemi, president and CEO, donated a matching sizes, all of which is designed to draw attention contribution of $26,520. to the category and increase sales. All of the material is available online at the company’s Reader Service No. 306 Web site. Reader Service No. 307 Reader Service # 23 Reader Service # 13

16 PRODUCE BUSINESS • APRIL 2010 HOW TO MAKE THINGS GROW

Whatever your role in the produce industry, the key to a blossoming bottom line is knowledge. About major trends and developments, and the people behind them.... About new sales opportunities around the world.... New packaging and transportation technology.... New ideas in marketing and promotion.... New retail strategies.... New equipment and services.... New techniques for managing individual businesses, and their personnel, more efficiently.

And your Number 1 source for all of the above is PRODUCE BUSINESS, the industry’s only monthly business magazine serving all buying segments. And the most widely read of any publication in the field. If you’re not receiving every important issue, call to start your subscription without delay. It’s the only way to be sure you’re getting all the knowledge you need. And growing the way you should. PRODUCE WATCH ANNOUNCEMENTS VIDALIA CELEBRATES 20 YEARS OF PROTECTION DEL MONTE’S FRESH VENDING LINE EXPANDS The Vidalia Onion Committee is celebrating 20 years Del Monte Fresh Produce Co., Coral Gables, FL, is of state and federal crop protection. In 1989, farmers offering its fresh fruit and vegetable vending line united to enact a Federal Marketing Order (FMO) for in many university and school vending machines Vidalias, established the VOC and extended the defini- nationwide. The University of Miami has already tion of a Vidalia onion. On February 6, 2010, these installed the new line, which includes products milestones were celebrated in Vidalia, GA. Terry specially packaged to ensure freshness in 4- to 6-oz. Gerrald (left), owner of Gerrald’s Vidalia Sweet sizes. Pictured are UM vice-president of HR, Onions, Statesboro, GA, was recognized as 2009 Nerissa E. Morris, president, Donna Shalala, and Grower of the Year. Reader Service No. 308 Sebastian celebrating Del Monte’s new machine. Reader Service No. 309

WONDERFUL PISTACHIOS PARTNERS WALTER P. R AWLS ACQUIRES WITH CYCLING TEAM SWEET CORN PRODUCER Wonderful Pistachios, Los Angeles, CA, Walter P. Rawl & Sons Inc., Pelion, SC, acquired a announced its product sponsorship of majority ownership stake in Mississippi Sweet Corn the Adageo Energy Pro Cycling team Producers Inc., (MSCO), Indianola, MS, more than for the 2010 racing season. The squad doubling its current sweet corn volume. The original stakeholders, all growers and of 12 cyclists will compete in its first landholders of MSCP will remain actively involved in the business, continuing to professional season, racing in nearly 30 domestic and international cycling events. grow sweet corn and expand into year-round vegetable crops, including leafy Wonderful Pistachios will help cover team expenses and provide riders and fans greens, cilantro and green onions. WP Rawl will begin marketing sweet corn from with pistachios as a healthful snack. Indianola beginning in June with the new crop. Reader Service No. 310 Reader Service No. 311

MASTRONARDI MAKES TOP 50 COMPANIES LIST HY-VEE DONATES PROCEEDS FROM Mastronardi Produce Ltd., Kingsville, ON, Canada, was SUN WORLD GRAPES named one of Canada’s 50 Best Managed Companies Hy-Vee Inc., West Des Moines, IA, donated for 2009, an awards program that recognizes Canadian $5,000 in proceeds from Sun World companies that have implemented world-class busi- International's Scarlotta Seedless brand grapes ness practices and created value in innovative ways. The selection committee to the Juvenile Diabetes Research Foundation. applauded Mastronardi for its innovation, strategic direction, corporate culture The donation was made possible by a prize and industry-leading initiatives, including The Green Grass Project, which drawing held by Sun World at this past year's highlights the elements in the company’s business process that are environ- PMA Fresh Summit. The donation will assist the foundation in finding a cure for Type 1 diabetes. mentally friendly. Reader Service No. 312 Reader Service No. 313 Reader Service # 10

18xx PRODUCE BUSINESS • ALLAPRIL CAPS 2010 DATE 85TH CPMA VANCOUVER VANCOUVER CONVENTION CENTER, EAST BUILDING VANCOUVER, CANADA • MAY 12-14, 2010 CPMA BOOTH REVIEW BOOTH #523 BOOTH #708 BOOTH #406 BOOTH #1013 ATLAS PRODUCE & CALIFORNIA STRAWBERRY CALIFORNIA TOMATO COLUMBIA MARKETING DISTRIBUTION INC. COMMISSION FARMERS INTERNATIONAL CORP. Bakersfield, CA Watsonville, CA Fresno, CA Wenatchee, WA Atlas Produce & Distribution Inc. is the California produces 88 percent of U.S.- Embracing green and sustain- As one of Washington State’s largest grower and shipper of the popular grown fresh strawberries, worth more able farming practices for apple, pear and cherry grower/shippers, Caramel Natural Medjool Dates, Date than $2.1 billion. Strawberries rank fourth more than 20 years, com- CMI strives to deliver the finest products Coconut Rolls, Date Almond among fruit categories in the produce bined with more stringent harvesting, through improved growing, harvesting Rolls and Jumbo department. Nutritious and available packing and shipping standards than tra- and shipping procedures. You can count Dried Grapes. Visit year-round, California strawberries are ditional USDA guidelines, California on CMI for exceptional our booth to taste the super-fruit for every day. Tomato Farmers members have the only service and selection of the amazing flavor mandatory food safety program that conventional and organic of Caramel Natural! employs governmental oversight. apples, pears and cherries.

BOOTH #615 BOOTH #1012 BOOTH #917 BOOTH #1508 DEL MONTE FRESH DOMEX SUPERFRESH DULCINEA GOURMET GARDENS INC. Coral Gables, FL GROWERS LLC FARMS LLC Folsom, PA Fresh Del Monte offers retailers and Yakima, WA Ladera Ranch, CA Gourmet Garden’s core line of 10 foodservice operators an array of innova- Domex Superfresh Growers is an inter- At the heart of Dul- convenient squeezable tube herbs and tive solutions to address the changing national fruit marketing firm. We grow cinea Farms lays true passion, innovation spices are distributed worldwide. Gourmet tastes and lifestyle needs of today’s con- and market conventional and organically and quality you won’t find anywhere Garden’s cold-capture technology and sumers. Our extensive distribution net- grown domestic and imported apples, else. Our passion drives us to provide the blend of natural ingredients preserve the full work allows just-in-time deliveries of our pears, cherries, peaches and apricots freshest produce and the taste con- flavor, color and aroma of the herbs and premium-quality, fresh products to your worldwide. sumers absolutely love. With passion spices. Stop by our booth to see the latest doorstep. comes dedication, ensuring every bite of range of Gourmet Garden Fresh Blends a Dulcinea product tastes simply amaz- Mediterranean, Mexican, Moroccan, Thai ing year-round. and Steak.

BOOTH #1000 BOOTH #913 BOOTH #1709 BOOTH #1708 THE OPPENHEIMER GROUP PEAR BUREAU NORTHWEST PRODUCE PRINCE EDWARD ISLAND Coquitlam, B.C., Canada Milwaukie, OR BUSINESS POTATO BOARD With a vertically integrated Become a fresh pear pro! Learn about Boca Raton, FL Charlottetown, PEI, Canada base of growers from more the many varieties of pears and engage Initiating industry The Island’s rich, sandy soil, clean air and than 25 countries, The in new merchandising improvement since 1985, PRODUCE BUSI- water and its long, cold Oppenheimer Group is a val- opportunities. Discov- NESS is the most widely distributed publi- winters, combined with the ued supplier to retailers, wholesalers and er why USA Pears cation in the industry. Exclusively edited latest growing, storing and foodservice customers. We deliver year- are a fresh choice for buyers, it provides a monthly dia- shipping techniques have round volumes of preferred items, as well for produce logue of marketing, merchandising, man- given growers the ability to as custom packaging, category manage- departments agement and procurement information deliver excellent quality ment, quality assurance, e-commerce throughout the that helps buyers accomplish the indus- potatoes. and transportation solutions. year. try's 9-to-13-A-Day goal.

RAINIER BOOTH #268 BOOTH #306 BOOTH #313 FRUIT CO. SAN MIGUEL PRODUCE INC. SEALD-SWEET TANIMURA & ANTLE INC. Selah, WA Oxnard, CA Vero Beach, FL Salinas, CA Rainier Fruit Co. is San Miguel Produce has been farming Seald-Sweet proudly celebrates over a The Tanimura & Antle families have dedicated to farming using principles of the Oxnard plain for three generations century of service to the produce indus- been growing premium, fresh produce good stewardship. Our primary responsi- and specializes in cooking greens. Our try, growing and shipping fresh citrus, for more than 25 years. Based in Califor- bility is to grow the finest quality apples, line of products includes: Cut ‘n grapes, pears and more from the nia’s Salinas Valley, this family owned and pears, cherries and blueberries using the Clean Conventional and Organ- finest growing regions in Florida, Cali- operated business focuses on quality, natural resources entrusted to us, with- ic greens, Jade Asian greens and fornia and around the world. freshness and innova- out compromising the ability of future Bunch greens. Come see the two tion to deliver a full- generations to do the same. Stop by our newest additions to the Organic line of fresh vegetables booth to discuss our 2010 blueberry and line, Rainbow Chard and Hearty across North America, cherry programs. Greens at our booth. Europe and Asia.

BOOTH #815 BOOTH #268 WELL-PICT INC. YUCATAN FOODS Watsonville, CA Los Angeles, CA From our conventional, premium straw- Yucatan Foods proudly presents Cabo berries, raspberries and blackberries to Fresh, a lifestyle produce brand. Items our popular organic line, Well-Pict’s qual- include: Authentic and Mild-Organic ity is known worldwide. Offering a vari- Guacamole, Mild and Medium Salsa, ety of packaging options, our berries are Bruschetta and the specially picked and shipped within new Avo-Hummus, hours of harvest. With year-round avail- 50 percent avocado ability, our finely tuned export programs blended with 50 ensure the berries arrive as perfect as percent hummus. possible, every time.

APRIL 2010 • PRODUCE BUSINESS 19 UNITED FRESH 2010 SANDS EXPO AND CONVENTION CENTER LAS VEGAS, NEVADA • APRIL 20-23, 2010 UNITED FRESH BOOTH REVIEW

BOOTH #620 BOOTH #1229 BOOTH #1319 BOOTH #1240 AIRDEX INTERNATIONAL INC. ALLIANCE RUBBER CO. CALIFORNIA STRAWBERRY CAVENDISH PRODUCE Henderson, NV Salinas, CA COMMISSION Charlottetown, PEI, Canada Patented Airdex pallets weight only Alliance retains a Watsonville, CA Cavendish Produce is the fresh potato seven to 10 pounds, carry 3,500 pounds long-term commit- California produces 88 percent of U.S.- specialist offering an assortment of value- and eliminate pallet-related CO2 emis- ment to produce grown fresh strawberries, worth more added and mainstream potato products. sions. Our pallets are sanitary, shock- growers and suppliers who were among than $2.1 billion. Strawberries rank fourth We are your one-stop supplier of top- absorbing, thermal insulating, repairable, our very first customers. Through the among fruit categories in the produce quality potatoes. recyclable, ISPM-15-compliant and free years, we have continued to adapt our department. Nutritious and available after a single air- products to best suit your needs. year-round, California strawberries are freight journey! the super-fruit for every day.

BOOTH #1242 BOOTH #1332 BOOTH #1042 BOOTH #1346 COLORFUL HARVEST LLC CRUNCH PAK DEL MONTE FRESH DULCINEA FARMS Salinas, CA Cashmere, WA PRODUCE N.A. INC. Ladera Ranch, CA Colorful Harvest grows premium fresh We produce more than over one billion Coral Gables, FL At the heart of Dulcinea Farms lays true berries and heirloom-style produce slices of apples each year. Our apples are Fresh Del Monte offers passion, innovation and quality you including strawberries, bushberries, mel- specially grown, selectively harvested retailers and foodservice operators an won’t find anywhere else. Our passion ons, Rainbow Crunch and hand-sorted so you get the best array of innovative solutions to address drives us everyday to provide the fresh- Carrots, orange, pur- sliced apple available. We set the stan- the changing tastes and lifestyle needs of est produce and the taste ple and green cauli- dard on shelf-life, promotions, packaging today’s consumers. Our extensive distrib- consumers absolutely love. flower, sweet red corn, and customer service. ution network allows just-in-time deliver- With passion comes dedi- violet broccoli and ies of our premium-quality, fresh prod- cation, guaranteeing that seasonal green beans. ucts to your doorstep. every bite of a Dulcinea product tastes simply amazing year-round.

BOOTH #1351 BOOTH #1335 BOOTH #1039 BOOTH #1257 HOLLANDIA PRODUCE/ MISSION PRODUCE INC. NATURIPE FARMS LLC PAKSENSE LIVE GOURMET Oxnard, CA Naples, FL Boise, ID Carpinteria, CA Mission Produce is a global packer, Naturipe Farms is About the size of a sugar packet, Pak- Experience the difference freshness can importer, processor and distributor of the right choice Sense Ultra Labels are a new class of tem- make with Live Gourmet brand living let- avocados and asparagus. Our ripening for fresh, premium perature recorder. They are available in tuces, cress and arugula by Hollandia and distribution centers across the globe, berries. First in blue- both contact and wireless models and Produce. Nurtured in a greenhouse and enable just-in-time delivery to customers berry sales globally, we can be recycled. harvested with their roots nationwide. New at Mission is our Mr. offer a full spectrum of varieties includ- intact, Live Gourmet prod- Avocado Fresh Guacamole product line. ing strawberries, blackberries, raspberries ucts stay fresher longer and Also new is Mission’s distributorship for and cranberries. Naturipe Farms is the provide your customers Frontera Foods, featuring guacamole source for all varieties, all seasons, con- with a repeatable experi- mixes created by Chef Rick Bayless for ventional and organic. ence package after package. our fresh avocados.

BOOTH #1239 BOOTH #1215 BOOTH #1217 BOOTH #1629 POTANDON PRODUCE PRODUCE BUSINESS PRODUCE PRO SOFTWARE SAMBRAILO PACKAGING Idaho Falls, ID Boca Raton, FL Woodridge, IL Watsonville, CA Potandon is happy to announce the This marks the 25th Produce Pro provides an Sambrailo Packaging is a third-genera- addition of Whole Baby Potatoes in anniversary of PRODUCE integrated operations, tion, family-owned company that has Sauce, a refrigerated steam product avail- BUSINESS, the No. 1 publica- accounting and ERP system. served the produce and floral industries able in the produce tion reaching produce buyers around the Our company meets the since 1923. With locations in California refrigerated section, world. Covering marketing, merchandis- specialized operational and and Mexico, we have built our reputation along with the ing and procurement issues that affect management reporting needs for com- on service and quality. Known for our Klondike Express, sales of produce and floral items, PRO- panies that buy, process and sell perish- design-to-distribution packaging innova- a shelf-stable, DUCE BUSINESS, uniquely “initiates industry able goods. tions, Sambrailo does whatever is best for fresh microwave improvement” in each issue. the produce. potato product.

BOOTH #1457,1867 BOOTH BOOTH #1328 #1047 BOOTH #1213 SAN MIGUEL PRODUCE INC. TRACEGAINS INC. VILLAGE FARMS YUCATAN Oxnard, CA Longmont, CO Eatontown, NJ FOODS San Miguel Produce has been TraceGains provides turnkey PTI compli- Village Farms is the industry leader in Los Angeles, CA farming the Oxnard plain for ance, labeling and traceability solutions North America of sustainably grown three generations and special- for line- and field-packed fruits, vegeta- greenhouse produce, including vine- Yucatan Foods proudly presents Cabo izes in cooking greens. Our bles and herbs. Our solutions also easily ripened tomatoes, bell peppers and Fresh, a lifestyle produce brand. Items line of products include: Cut cucumbers handpicked at the peak of include: Authentic and Mild-Organic ‘n Clean conventional and organic inter-operate with your accounting, flavor. Our products are available 365 Guacamole, Mild and Medium Salsa, greens, Jade Asian greens and bunch warehousing and days a year and we exceed customer Bruschetta and the new Avo-Hummus, greens. Come see the two newest addi- ERP applications. expectations through an unparalleled 50 percent avocado blended with 50 tions to the Organic line: Rainbow Chard commitment to quality, reliability and percent hummus. and Hearty Greens. unsurpassed food safety standards.

20 PRODUCE BUSINESS • APRIL 2010 Reader Service # 60 The Ins & Outs Of Foodservice Buying Contracts Contracting the right items the right way will keep growers, shippers and buyers out of trouble and in the green.

BY CAROL BAREUTHER, RD

ear freezing temperatures in January caused an estimated 70 percent loss of Florida’s tomato crop at a time when this southern state supplies two-thirds or more of domestic con- Nsumption. This left major foodservice chains like Burger King scrambling to satisfy customers’ cravings for a slice of tomato atop their hamburgers. Similarly, FOBs for iceberg and romaine lettuce doubled during the early and mid-winter when rainstorms caused by El Niño drenched the ‘winter salad bowl’ regions of Southern California and Arizona. Restaurant chains, as a result, found themselves faced with a shortage of greens and profit margins on salad dishes that were heading into the red. What can foodservice operators do to prevent these nightmare menu scenarios? No one can control Mother Nature, but many say putting contracts in place between supplier and buyer is the answer to guaranteed supply and consistent pricing. The key is to contract the right items in the right way.

Contracting On The Rise Foodservice contracts for fresh produce are nothing new. Gina Nucci, director of foodservice marketing for Mann Packing Co. Inc., in Salinas, CA, con- firms, “It has been around for many, many years.” Likewise, the way some foodservice operators have approached contracts hasn’t changed over the years. Janet Erickson, executive vice president of purchasing, quality assurance and research and development for Del Taco Inc., a Lake Forest, CA-based QSR chain, says, “Some things we contract and some we don’t. It all depends on the commodity.” Still, when you look industry-wide, contracting for fresh produce is on the rise in the foodservice industry. Rick Alcocer, senior vice president of fresh sales for Duda Farm Fresh Foods Inc., headquartered in Oviedo, FL, says, “As more variables that make up a final delivered price to a customer become volatile — for example freight and packaging — customers have looked into what components of the overall cost they Reader Service # 39 Getting The Most Out Of Contracts he major advantage of a contract is tracts,” says Kane. “That’s because the mar- that it delivers a regular and consis- ket for this type of produce can bottom out T tent supply within agreed-upon pric- and it can also jump quickly. For example, ing parameters. Whether the contract stipu- you can have 40 weeks of great prices and lates a fixed priced or one that moves with then 12 weeks of high prices and limited the open market, the foodservice operator availability due to bad weather or the transi- always knows the final FOB price. tion between growing areas.” “There are two basic types of contracts,” High-low contracts work in this way. For says Brian Kane, vice president of client ser- example, suppose a commodity typically vices for Pro*Act LLC, in Monterey, CA, sells for an FOB between $7 and $12. Each “fixed price and high-low.” week, the USDA Market Reports out of the Gene Harris, senior purchasing manager region where the product is being shipped for Denny’s Inc., based in Spartanburg, SC, serve as a guide to what the foodservice says, “Processed produce is typically a fixed operator pays. It might be $8 one week, or firm price versus bulk items, which tend $10 the next and $9.50 after that. These to be more of a commodity.” prices are all within the contracted $7 to “As for commodities, 52 week row crops, $12 range. Now, say the market for this item such as lettuces, are typically on a fixed- goes up to $15. The operator will pay $12 price contract,” adds Kane. because this is the contracted cap. Many “The decision to go with a fixed-price high-low contacts also have escalator clauses contract or one where the price fluctuates with what’s called ‘triggers.’ In this example, with the market all has to do with how say the trigger is $18. The contract may call much risk the operator is willing to take, for the foodservice operator to go up $1 in explains Janet Erickson, executive vice presi- price once the trigger point is reached. In dent, quality assurance and research and this example, that price would be $13. Esca- development for Del Taco, a Lake Forest, lator clauses often provide a ceiling; say $25 CA-based Quick Service Restaurant (QSR) in this example. That means the foodservice Reader Service # 17 chain. “If an item is really significant to operator will go up in price dollar for dollar menu costing, then you want to be guaran- to a high of $25 and then no further even if teed a certain price. If it’s a small, ancillary the market goes to $40 or $50. item, then you might be willing to take Maurice Totty, director of procurement some price fluctuation. With fixed pricing, for Foodbuy LLC./The Compass Group, you give up the opportunity to get a low Charlotte, NC, who also likes to negotiate price when the market goes low, but you’re high-low contracts on some produce items, protected when the market goes high.” admits, “This doesn’t dramatically affect our Mikel Weber, director of purchasing for food costs since it’s a small range. Yet, it Golden Corral Corp., based in Raleigh, NC, gives the grower some relief. The lowest prefers not to contract on a fixed point. price isn’t always the best if it’s going to criti- “There’s always a winner and a loser. cally damage your supplier’s business.” Instead, we like high-low contracting that In reality, Weber notes, “It’s good to rides the market and delivers a fair price for have a mix of contracts — fixed, high-low both buyer and supplier.” and high-low with an escalator. This allows Vegetables such as cucumbers, squash foodservice operators to meet their strategic and tomatoes work best on high-low con- goals.” pb

can stabilize; thus contracting has become Gene Harris, senior purchasing manager more popular.” for Denny’s Inc., based in Spartanburg, SC, agrees and adds, “Contracts establish an Why Contract? agreement between the parties and assures “As a farmer,” says Nucci, “it’s important the buyer of having a steady supply and the for us to know — if we invest in planting and seller of having a committed customer.” cultivating our crops — that they have a home The key to effective contract pricing is con- when they are ready to harvest. It’s good eco- sistency, says Maurice Totty, director of pro- nomics and sustainability. On the other hand, curement for Foodbuy LLC./The Compass the advantage of a contract for a foodservice Group, in Charlotte, NC. “Foodservice opera- operator is knowing where your produce is tors base their menu pricing on projected coming from, for food safety reasons as well food costs and it’s advantageous when those

Reader Service # 69 as menu planning and known food costs.” costs are consistent from week to week. The

24 PRODUCE BUSINESS • APRIL 2010 Reader Service # 34 26 Reader Service # 3 more efficient andlessenstheglutsorover- efficient more supplychain ness, whichmakestheentire lectively withcustomersforconsistentbusi- to thecontractallowsshipperplancol- Thevolumetied but smallerpositivemargin. “Contract pricingallowsustomakeconsistent isn’t goodbusiness.” themenu,which ortakesomethingoff margin play. toloseprofit Theonlytwooptionsare ators can’tjackthepriceandshrinkdis- oper- foodservice Unlikeretail, can besevere. foodcosts negative impactofskyrocketing PRODUCE BUSINESS• APRIL 2010 On thesupplierside,Alcocerexplains, year-round andthis itself lends to contracting.” broccoli are con- that come out of California, rce.There’stracted. essentially onesupply region “Virtually such aslettuce allrow and crops, in Raleigh,NC. Corp.,based fortheGoldenCorral purchasing of director MikelWeber, asserts problem,” a ers youdon’thaveacontractwithifthere’s pany, youcan’tnecessarilycountontheoth- operatorcontractswithonecom- foodservice thecontract.” from time andthebuyeristemptedtostrayaway periodsof forshort better dealsoutthere inalowmarket.” wind uppayingmore contractedprice,youcan locked intoacertain operatoris vantage, “Whenafoodservice ative Inc.,inSalinas,CA,pointsoutadisad- supplies inthemarketplace.” What ToContract htcm u fClfri,aecontracted. are that comeoutof California, suchaslettuceandbroccoli crops, all row Corp., basedinHouston,TX,knows, “Virtually forSysco ofproduce Dachman, vicepresident iscomingfrom.” the product is foodsafetyandtheneedto knowwhere What’sdrivingthis onionsandcilantro. green ume value-addeditemsaswell,such operators havesoughttocontractlowervol- adds, “Inthepastfiveyears,foodservice tion tothesehighvolumeitems,O’Leary andcoleslaw,romaine is contracted.” Inaddi- suchasiceberg, value-added produce, ofour 65to70percent from “Anywhere CA,reports, Inc.,inOxnard, Boskovich Farms divisionat marketing forthefresh-cut saysYork. hasgrown,” of thisasthecategory been inplayalongtimeandwe’veseenmore son. amendabletocontracts,”explainsErick- more weather andsuppliersoftheseitemsare notasdependentonthe these itemsare “Another disadvantageisthatwhena adds,“Occasionally,Harris maybe there Tim York, oftheMarkonCooper- president On the commodity front, Richard On thecommodityfront, ofsalesand vicepresident Mike O’Leary, have “Contracts forvalue-addedproduce Del Taco “as produce, contractsfresh-cut Richard Dachman — Sysco Corp. Fast and Fresh!

At Maurice A. Auerbach, Inc., location is the key to getting produce to you fast and fresh. From our South Hackensack location, our network of refrigerated trucks covers the tri-state area. With unsurpassed service to all Northeast area retailers and distribution centers, we provide the highest quality garlic, asparagus, radicchio, sno peas, ginger root, Belgian endive, shallots and many other produce specialties. Maurice A. Auerbach, Inc. 490 Huyler Street • South Hackensack, NJ 07606

Call 888-Auerpak Paul Auerbach • Jeff Schwartz • Ian Zimmerman • Bruce Klein • Jim Maguire • Josh Auerbach

Reader Service # 28 28

Reader Service #64 tocontract.” harder andcanbe areas growing many different squash, zucchiniandtomatoescomeoutof ple, softvegetablessuchaspeppers, be contracted,believesDachman.“Forexam- cult tocontract.” peppersaweek,thenitwillbediffi- of green contract. However, buyinga1/2-box Ifyou’re week,it’seasyto lettuceevery ers oficeberg buying20trail- sales.Ifoperatorsare produce of thetop20percent etables thatrepresent andveg- of dollarssoldorthefruits percent explains, “We focusoncontractingthe top80 LLC,inMonterey,vices forPro*Act CA, andthislendsitselftocontracting.” round year- essentiallyonesupplyregion There’s PRODUCE BUSINESS• APRIL 2010 Not all fresh fruits andvegetablesshould fruits Not allfresh ofclientser- Brian Kane,vicepresident

Reader Service #20 Reader Service #75 (NRA)’s 2010“What’sHot,What’sNot”sur- based NationalRestaurantAssociation intheWashington, DC- chefs whoparticipated Federation-member 1,800 AmericanCulinary than of2010bymore No. 1menutrend notlikelytoescalate.” prices were wasgoodsupplyand knowledge thatthere potatoes. We gavethisadvicebased on for example,wesuggestednottocontract items tobuyontheopenmarket.Lastyear, vice buyerswhatitemstocontractand ofourjobistocommunicatefoodser- “Part items,” notesDelTaco’s Erickson. menu forpermanent tracting thaningredients lessofanissueforcon- are ited-time offers Locally grown produce wasrankedasthe produce Locally grown As adistributor, Markon’sYork details, lim- inmenuitemsthatare “Ingredients

Reader Service #2 h FreMjue Clause ‘ForceThe Majeure’ Mother Nature And command apremium.” weather, andthefactthattheseitemsusually limitedbycold cycle, especiallyinareas items. Thisisduetothelengthofgrowing notgoodcontract andvegetablesare fruits vey. However, Kanemaintains,“Locallygrown will not affect us from providing product tofill product providing usfrom will notaffect volume decent sizeddeviationinharvested cover ourcontracts,becauseevenafairly thatwecannot rare falls inline.Itisvery else andhopethateverything ning process oursalesplan- weintendtosellthrough crop grower/shipper, allwecandoisplantthe saysDuda’sAlcocer.Nature, “Asa There are noclear-cutwaystobeatMother are There a moderately sized contract program.” In the possibility that a supplier does have “Different companies handle an Act of God a significant crop failure, most contracts con- occurrence in different ways. With our ven- tain a Force Majeure or Act of God clause that outlines a course of action. Randy Benko, dors, it means ‘not available at any price.’ If the foodservice business development sales product is available, but the supplier sells it manager for Driscoll’s, based in Watsonville, CA, says, “Act of God clauses are there for a someplace else for more money, then that’s an reason. The nature of fresh produce is that Act of Greed and we no longer do business there are circumstances that can’t be controlled, but that’s where communication with that supplier.” comes in. You always want to communicate growing conditions to your contract partner so — Mikel Weber they can make informed decisions, such as Golden Corral ordering more heavily on the front end or tem- porarily taking an item off the menu.” are covered to as close as 100 percent as enough product to cover even the contracted On the grower/shipper side, Alcocer possible and all other open or market busi- volume, then those contracted volumes are notes, “When an Act of God occurs, contracts ness is pro-rated 100 percent. If there is not pro-rated until it is possible to cover them

MORE ON NEXT PAGE Reader Service #29 Reader Service #58

APRIL 2010 • PRODUCE BUSINESS 29 30 Reader Service #44 relay thattotheirsupplier.relay InanActofGod of theequation:supply, qualityandprice, components The buyerhastoprioritizethree agapinsupply? togetthrough necessary, oreventheircompetitors,if regions growing other from able tosupplyyouwithproduct they “Are nections,” saysDenny’sHarris. to knowyoursupplier’scapabilitiesandcon- standstill.” toavirtual poor yieldingcrop slowedthealready mally cooltemperatures aboutdiseases,andabnor- brought Nature cer. conditionsbyMother growing “Abnormal FOB marketswellover$30,pointsoutAlco- the cut availablevolumedrasticallyandforced that rienced somequalityandyieldpressures expe- hearts andromaine year whenromaine non-contractedbusiness.” first, thenregular alwayscovered Contractsare 100 percent. PRODUCE BUSINESS• APRIL 2010 “When enteringintoacontract,youneed attheendoflast This situationoccurred while the former were in short supply. inshort were while theformer fieldtomatoestoRomatomatoes, round from thiswinterwhenthechainswitched occurred Thissituation we’ll gowiththealternative.” withoneproduct, isaproblem specs. Ifthere son says,“We putsomeflexibilityinto our ing withtheirspecifications.DelTaco’s Erick- order.” ority wassupply, quality andprice,inthat available.Ourpri- guests aslongtheywere tomatoestoour would continuetoserve “OurCEOsaidthatwe weeks,” saysHarris. oftheirmenuforseveral took tomatoesoff bothchainandindependent, restaurants, “Numerous Florida’stomatocrop. reduced substantially ago whenseveralhurricanes if notall,willsuffer.” situation, atleastoneofthosecomponents, Some operatorsseektokeepsupplycom- Denny’s ranintothissituationafewyears

Reader Service #73 with thatsupplier.” andwenolongerdobusiness an ActofGreed money,it someplaceelseformore thenthat’s isavailable,butthesuppliersells the product dors, itmeans‘notavailableatanyprice.’If ways.Withourven- indifferent occurrence companieshandleanActofGod “Different fornegotiationinacontract.” room always the fullpricebecauseofthis.There’s in someaccounts.We endedupnotcharging hearts forromaine had tosubstituteromaine located inSalinas,CA,says,“Thiswinter, we Inc., general managerofBoggiattoProduce went to$40and$50. tomers whentheFOBpricefor165-sizefruit cus- sized lemonstooneofitsfoodservice smaller- grade alsoallowedSyscotoprovide In the end, says Golden Corral’s Weber,In theend,saysGoldenCorral’s Similarly, and Michael Boggiatto, president Dachman notes,“Flexibilityinsizeand pb Reader Service # 8 Processed Guacamole Emerges As A Growth Opportunity For Retailers Thanks to high-pressure packaging, prepared guacamole tastes better and lasts longer.

BY BRYANT WINES

Mention the word “guacamole” and most days. “Today’s prepared guacamole is a fresh prod- people will think of whipping up a tasty uct that provides a new option for customers,” says batch of their own time-tested and party- Tracey Altman, vice president of marketing for Fort approved recipe featuring avocado, tomato, Worth, TX-based Fresherized Foods, makers of the lime, cilantro and other fresh ingredients. Wholly Guacamole brand. Steve Martin, director of business development But to a handful of companies, most U.S. retail- at Mission Produce Inc., headquartered in Oxnard, ers and a growing number of consumers, there’s CA, agrees. “Guacamole consumers each think another option that is gaining popularity: Prepared, their recipe is the best. We don’t assume our Mister packaged guacamole. Avocado prepared guacamole will replace fresh. We Up until just a few years ago, if customers want- simply hope to surprise customers with a great-tast- ed guacamole, they had no choice but to make it ing product that’s better than they expected.” themselves. There were a few processed products selling in the dairy case that claimed to be gua- HIGH-PRESSURE PACKAGING camole — and contained small amounts of avocado. Perhaps the single biggest factor fueling growth But they had very little in common with the pre- of processed guacamole is high-pressure packaging, pared guacamole that consumers can pick up in the also known as cold pasteurization. The process refrigerated cases of the produce department nowa- enables manufacturers to use 100 percent fresh

Prepared guacamole is gaining popularity thanks to its convenience and a growing interest in Latino foods.

32 PRODUCE BUSINESS • APRIL 2010 “It’s a good item that is growing in sales and popularity. Here in the Midwest, the whole avocado business is a growth category.”

— Mike O’Brien Schnucks Markets Inc

product with no additives or preservatives. Interest in the high-pressure packaging method evolved with the restaurant/foodservice industry goal of maintaining fresh product shelf-life with minimal labor involved. The next step was a natural transi- tion to consumer-friendly packaging for retail in pouches or trays. “Hi-pressure packaging means we can use nothing but fresh ingredients,” explains Al Ahmer, vice president of processed sales and production for Calavo Prepared Foods Division, in Santa Paula, CA. “We give the customer a fresh product that is consistently good with excellent quality.” Today, there are several brands available on supermarket shelves offering a variety of styles, including mild, hot and single serve. The packaging technology used by each company gives the product a shelf-life of 30 to 60 days with no degradation in flavor. “It’s a good item that is growing in sales and popularity,” says Mike O’Brien, vice president of produce and floral for St. Louis, MO-based Schnucks Markets Inc. “Here in the Midwest, the whole avocado business is a growth category.” He reports that Schnucks sees prepared guacamole as an item that can provide incremental business — a compliment to fresh avocado sales.

DRIVING GUACAMOLE GROWTH There are a few factors driving this growth across the country. Martin believes that the popularity of avocados in general is a contributing factor. “Interest in avocados as part of Latino foods and recipes continues to grow,” he notes. Ahmer agrees that America’s interest in Hispanic foods has spurred trial and acceptance of prepared guacamole. “Many consumers’ first experience with guacamole has come from restaurants,” he asserts. “We’re able to move those customers into a prepared product as the next step. They might be unsure of exactly how to make their own

guacamole, but with our product they can Reader Service # 43

APRIL 2010 • PRODUCE BUSINESS 33 Other factors driving growth appear to be consumer interest in avocado as a healthful food and the continued interest by both retailers and consumers in “value-added products.”

simply open the package and enjoy!” camole as a heart-smart alternative to dips Other factors driving growth appear to with a mayonnaise, cream cheese, butter or be consumer interest in avocado as a sour cream base.” healthful food and the continued interest by both retailers and consumers in “value- VARIOUS DEMOGRAPHICS added” products. “Avocado is a nutritional TARGETED hero,” says Jennifer Shea, Supervalu corpo- The industry appears to have identified rate dietitian at Shaw’s, ACME, Farm Fresh three different consumer groups as target and SFW stores. Avocados provide 20 customers. “The ‘convenience’ customer is essential nutrients, including folate, vita- the most obvious target,” says Fresherized min E, fiber and potassium. Avocados are Foods’ Altman. These would be consumers rich in monounsaturated fat, which may who already enjoy guacamole, but want help lower LDL (bad) cholesterol levels the convenience that comes by simply when used in place of saturated and trans opening a package. She also identified two fats. “We’d encourage shoppers to enjoy other segments that offer potential: The avocado in homemade or prepared gua- Novice and the Die-Hard. “Novices are Reader Service # 62

34 PRODUCE BUSINESS • APRIL 2010 more inclined to prepare more of their food in the refrigerated section, surrounded by themselves, getting them to use prepared dressings, juices and so on,” he describes. guacamole is a tough sell,” he explains. “But He believes that product placement, special the fact that we are using 100 percent fresh displays and signage to help customers ingredients is a key benefit that Latino cus- locate the product can go a long way to tomers recognize and appreciate.” building sales. “Retailers are on-board. They In any case, awareness and trial are keys know it is good, that it has great flavor. Most to acceptance. “Making customers aware of carry at least one label. Even with shelf the product and sampling the guacamole space limitations, this is a product that has are keys to growing the business,” says Alt- potential,” he adds. man. Calavo’s Ahmer notes that, as with other Martin agrees, adding that one challenge products, in-store demos and ad support Photo courtesy of Fresherized Foods Guacamole experts suggest tying in is the packaging itself. “Prepared guacamole make a difference. “As Hispanic foods con- merchandising efforts to holidays, is in a relatively small package. It is slotted tinue to grow in popularity, every holiday both the expected, such as Cinco de Mayo, and the unexpected, such as Breast Cancer Awareness Month. new to guacamole. Maybe they tried it at a restaurant or a party and liked it, but think that making it on their own would too hard or intimidating,” she explains. Altman believes the most difficult consumer to capture is the Die-Hard guacamole lover — that consumer who is convinced that a prepared product will never be as good as their own, unique recipe. Mission’s Martin adds the Latino customer to the list. “Since that segment is

“Many consumers’ first experience with guacamole has come from restaurants. We’re able to move those customers into a prepared product as the next step. They might be unsure of exactly how to make their own guacamole, but with our product they can simply open the package and enjoy!”

— Al Ahmer Calavo Processed Foods Reader Service # 6

APRIL 2010 • PRODUCE BUSINESS 35 presents a good time to promote prepared guacamole.” Natural occasions are Cinco De Mayo and Mexican Independence Day in September. But guacamole appears to be making the menu at many other holidays and events, including Super Bowl parties.

A PRODUCT ALIGNED FOR GROWTH ACNielsen estimates prepared guacamole sales at $200 million annually, with retail and foodservice splitting that 50/50. Retail growth appears to be running 5 per- Retailers shouldn’t be concerned that processed gaucamole sales will cannabalize cent per year. Profit margins are comparable fresh avocado sales. In fact, insiders believe the product creates new customers.

to other fresh produce items. At first look, one might think that processed guacamole sales would cut into fresh avocado volume. But that’s not the case. Jan DeLyser, vice president of marketing for the Irvine-based California Avocado Commission, says that her organization views processed product as a way to introduce consumers to guacamole. “We think this develops new avocado customers. It leads consumers to increased fresh avocado purchases.” This is a sentiment shared with the companies manufacturing processed guacamole.

ACNielsen estimates prepared gaucamole sales at $200 million annually, with retail and foodservice splitting that 50/50. Retail growth appears to be running 5 percent per year.

With the continued interest in various ethnic foods and flavors, the ever-growing number of consumers who rely on the convenience of value-added produce, technological advances in packaging and manufacturers willing to expand variety, it appears that packaged guacamole is poised to make that

Reader Service # 1 growth a reality. pb

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Reader Service #57 Tiiy rns n IOBrands” “Trinity Brands”and“ITO Dennis Surabian Jr., OscarRamirez Primavera Marketing 559-433-3777 C www.trinityfruit.com John Hein,Vance Uchiyama, F ASEL AVAILABLE LAMSHELLS fax: 559-433-3790 AUIGTEFLOIGLABELS FOLLOWING THE EATURING D BROOKS, TULARE, P Packed inbags,clamshells, P ROYAL RAINIER, RAINIER &BING RIMA ROGRAMS MSI AND OMESTIC “Ripeway Brands Fax: 559.261.9842 Fax: 209.931.9424 David E.White, FRESNO OFFICE 559.448.1860 209.931.9420 F Metric, 5kilos ASAND BAGS Please CallRich Fresno, CA RUTTA Jim Cousins RainierCherries & Garnet, Chelan Brooks, Tulare, Bing, ® A •P VAILABLE RIMAVERA E XPORT ” , ® . :

Reader Service #49 Reader Service #77 PI 00•PRODUCE BUSINESS • APRIL 2010 37 Reader Service #50 Reader Service #37 The Deal From Down Under The big guys in the Down Under fruit deal plan for a profitable season.

BY MEREDITH AUERBACH

As spring rolls out through North America, CITRUS FROM AUSTRALIA growers and marketers in Australia and New DNE World Fruit Sales, located in Fort Pierce, Zealand are busy counting boxes, watching FL, is the sole importer of Australian citrus to the currency rates and revving up their market- United States. Mark Hanks, vice president of sales ing plans to successfully capitalize on Ameri- and marketing for North America, reports, “Mid- can and Canadian markets. March is still a bit early for us to precisely predict the level of imports, but we do know the Navel For the 2010 season, these countries can still will be down somewhat, about 200,000 cartons, to count on the message to retailers that their products 1.2 million, due to high heat during the bloom are counter-seasonal, offering consumers fruit that period. The season starts in July and runs through is freshly harvested, but does not really compete mid-October. with domestically grown crops. Consumers, even “We regard Australian navels as a mature pro- those buffeted by the recession and made more cau- gram,” Hanks continues, “and it supplies what both tious in their purchases, have come to depend on consumers and retailers want: Large, bright fresh year-round supplies of their favorite fruits and veg- navels. California will be out and retailers want a etables. The niche has been created, and this year, continuous supply. Most of it will go to the West marketers believe, opportunity abounds. coast, although we would certainly be happy to ship east if a retailer requested it. Retailers can expect large, clean fruit. The yield is up and there are high pack-outs.” “We had a very successful marketing campaign in 2009,” reports Stu Monaghan, DNE’s national sales manager. “Growers from Australia toured major markets here, sampling fruit with store customers and providing personal contact. Obviously, we can’t be local with Australian citrus, but we can make a locale come alive and share with people just how the fruit is grown and handled. It was very effective because initially, many shoppers assumed our growers were actually actors. We had a natural way to move from that conversation to information about the fruit. “ The Australian crop is not limited to Navels. Specialties, including Mineaolas, four varieties of Tangerines and a late-season, seedless Mandarin, called Aussie Sweet, were unaffected by the heat and a total supply of approximately 600,000 cases will flow to market from June through September. Small quantities of blood oranges from Australia are available in August. Marketing plans are not yet fully developed, but DNE does plan to continue a tie-in with Ocean Spray juice for a second year. High-graphic, in-store bins offer bags of Navels with a $3-off coupon

Photo courtesy of DNE World Fruit Sales when coordinated with an Ocean Spray purchase. As part of DNE’s U.S. marketing campaign, Hanks remarks, “Kids love the kangaroo logo and growers toured major markets, sampling fruit adults have very positive associations with all for customers. things Australian.”

38 PRODUCE BUSINESS • APRIL 2010 Reader Service # 24 and marketing program for pears. “One of our favorites is a Comice-type called Taylor’s Gold available May through July,” he describes. “It is firm, but it is shipped fully ripe and ready to eat; it’s sweet and very juicy. We see the best crop coming in years, with size peaking between 60s and 70s. Bosc will be down slightly and Comice will fall into normal range.”

THE ORIGINAL NEW ZEALANDER Kiwifruit has now been coming into the United States from New Zealand for decades, five decades to be exact. The fruit is no longer considered an exotic, but rather a mainstay, if relatively minor, component of retail produce departments across the country. New Zealand and California production literally trade places with their respective six-month alternate seasons. Innovation has come through the expansion Photo courtesy of DNE World Fruit Sales Initially, many shoppers thought DNE’s growers were actors, of kiwifruit SKUs, which now include organ- but this opened conversations about the fruit. ic, green, yellow or gold. “We expect this year’s green kiwifruit APPLE, PEARS FROM Growers and retailers are excited about the crop to be similar to last year, with good siz- NEW ZEALAND growth of the proprietary apple varieties of “Apples from New Zealand mean North Jazz and Envy. Nelley notes, “Retailers tend to American consumers can have fresh crop reduce SKUs of apples during the summer so apples all year long,” points out David Nel- the varieties they offer and display must res- ley, director of the apple and pear category onate with consumers. At the same time, for Coquitlam, British Columbia-based The summer conditions demand a sturdy apple Oppenheimer Group. “We see this year as a that will hold up well on display. These two “We regard great opportunity. In addition to being apples can meet those demands. Australian Navels as counter-seasonal, the Washington crop of “Jazz this year will peak at size 90 or larg- Royal Gala is down about 8 percent and the er, and about 40 percent of the crop will ship a mature program shipping rates across the country from to the Eastern half of the United States,” Washington are steady. Conditions in Chile details Nelley. “We’ll be setting up demos in and it supplies what following the earthquake also may limit Cal- stores throughout the summer and at sport- both consumers and ifornia storage apples normally imported ing events where we can engage consumers. from that country.” We still regard this apple as being a recent retailers want: Large, Apple varieties from New Zealand large- introduction, even though it has been about bright fresh Navels. ly mirror those grown domestically. Major five years. Our measure of growth is reflect- varieties include Gala, Fuji, Granny Smith, ed by changes in market share and this vari- California will be out Pacific Rose and Braeburn. The flow begins ety has the fastest growing share.” and retailers want a in April and continues into September. “Envy,” Nelley continues, “will be avail- Enza, formally the New Zealand Apple & able from June through August in its second continuous supply. Pear Marketing Board, will ship 15 conven- year of U.S. distribution. It still has small tional apple and pear varieties and six volume, about 6,000 boxes, shipped to the Retailers can expect organic apple varieties in 2010. United States, but it is a true proprietary. large, clean fruit. Tom Richardson, general manager of Volume will increase as Enza licenses Wash- Wenatchee, WA-based Giumarra of ington growers to produce this variety, a The yield is up Wenatchee, which is responsible for apple cross of Gala and Braeburn that is fully red, and there are high and pear programs, anticipates a total with a sweet/tart flavor profile. Because of export apple crop from New Zealand of 14 this, there is a high demand in Asia.” pack-outs.” million cartons and comments, “Where “Another new variety is an apple called they all get shipped depends on many fac- Divine,” reports Richardson, “arriving in North tors including sizing, market demand, cur- American for the first time. Our growers are rency exchanges and customer relation- active in new variety development and have — Mark Hanks ships. Most Galas, for example, that peak exclusive rights to this variety. It’s a bi-colored DNE World Fruit Sales above 90 count size will be shipped to apple with a very interesting flavor profile that North America. Both the UK and Europe starts off tangy and finishes sweet.” tend to buy small sizes.” Nelley also directs Oppenheimer’s sales

40 PRODUCE BUSINESS • APRIL 2010 ing and good world-wide demand. Italy’s longer selling season. crop is low and the gold kiwifruit variety Each color has its own fans. The gold is from New Zealand is down about 20 percent sweeter, with no tartness and is ready to eat from last year, says, Richardson. when sold. Brux reports, “Gold kiwifruit is Karen Brux, general manager of Zespri especially appealing to Asians, both in Asia North America, a branch of Zespri Interna- and in niche markets around the United tional Ltd., based in Mount Maunganui, States. There is an excellent Korean market New Zealand, approaches each New in Atlanta, as well as Chinese demand in Zealand season with passion and a carefully Dallas and Houston. We have the ability to honed marketing plan designed to convince direct the limited volume of gold kiwifruit to U.S. consumers that kiwifruit is an essential where there is good demand. Over the next part of a fresh, healthful diet. “We’ve tasked several years we expect volume to increase.” ourselves this year to create stronger con- The marketing scheme is planned, but nections between growers, retailers and con- opportunistic at heart. “We work closely sumers. We have a story to tell and a great with retailers to implement demos and cus- product to sell,” she proclaims. “Our biggest tomize them to their needs,” explains Brux. Photo courtesy of DNE World Fruit Sales challenge continues to be retail placement “Events where we can interact with con- customized promotions that encourage and shelf space. Kiwifruit really isn’t a tropi- sumers are important. We love to create sales, but don’t compete head-on with bigger cal, and it is better placed with citrus and contests and consumers seem to love them categories for consumer attention. Brux soft fruit. That is what it takes to move the as well. Our newest venture is social media reports, “We try to do season-long programs category contribution higher,” she adds. — learning how to develop it, measuring its that kick off strong at the beginning of the Both green and gold kiwifruit present effectiveness and keeping up with our con- season and during the back-to-school period. unique opportunities for retailers. Green sumers. Mommy bloggers have large net- Promotions are smaller in between those is the primary variety, as it dominates vol- works and communicate extensively, so we times. This plan has been effective for us. ume and has a longer market window. encouraged them with a contest on health- We compete directly with kiwifruit from Both varieties begin shipments to the ful lunches for kids. We expect to expand Chile and we won’t ever be the cheapest United States in May with green kiwifruit with YouTube, Twitter and Facebook.” product. We emphasize value with our large, running into November, while the gold is At retail, the basics of marketing contin- consistent fruit, leadership in standards and finished by the end of September. As vol- ue with encouragement to sell more by commitment to sustainability. In the end, it ume of the gold increases it may have a weight or multi-piece package and to deliver is the total package that wins loyalty.” pb Reader Service # 38

APRIL 2010 • PRODUCE BUSINESS 41 Plentiful Supplies Foreseen For Southern Fruits The popularity of sweet Southern fruit continues to soar, while much of the crop rebounds from the freeze.

BY KEN HODGE

Florida strawberries have rebounded from production. We should go four or five weeks. The the longest cold spell in recent memory, quality is great. The size is great. We’re hoping for causing shortages and a spike in prices, but some happy customers.” southern peaches, melons and other specialty Larry Scarborough, a sales associate with BBI berries are expected to be in good supply Produce Inc., headquartered in Dover, FL, says this year — barring any more malice from Florida growers will finish their strawberry harvest Mother Nature. soon after Easter. “Right now, we’re in a new crop — a good crop,” he says. “The strawberries look “It’s been a very challenging year for strawber- good. We’ll have volume through March and ries,” reports Keith Mixon, president of Sun- demand is very good. The chains are starting to nyridge Farm Inc. of Winter Haven, FL. “Produc- promote strawberries.” tion has been down significantly throughout the year since December.” A BENEFIT FOR BLUEBERRIES While berries were lost during nearly two weeks While freezing temperatures devastated straw- of severe cold weather in January, plants them- berries, the cold weather actually benefited blue- selves survived for the most part. Mixon says they berries, according to Mixon. “The plants got the began bearing harvestable fruit again in March. “We winter chill they needed,” he points out. “They typically go through April with strawberries,” he liked it. We’re starting a great Spring and we expect explains. “We’re hoping to make up for the loss of to have some volume by week 13 (late March) and promotable volume by week 16 (mid to late April). We are about a week later than normal. We are expecting Florida to have a great crop this year, albeit a later one. We are very excited to start the domestic season off with fresh blueberries.” In Georgia, the blueberry crop is also looking good, as long as no additional damaging cold spells occur, remarks Joe Cornelius, owner of J&B Blue- berry Farm Inc., located in Manor, GA, who is chairman of the Georgia Agricultural Commodity Commission for Blueberries. “We met our chill hours in blueberries several weeks ago and we’ve just been hanging onto this cool, damp pattern for the last few weeks,” he continues. “That has slowed things down. We could still get walloped by the frost in the next three weeks, too.” Cornelius agrees retailers can expect Florida blueberries to become available in late March or early April. Georgia berries, usually available by the first week of May, could be a week late this year due to cool weather. “Southeast Georgia has While consumers may not recognize individual varieites of peaches, one of the longest growing windows for blueber- Southern peaches always generate excitement. ries,” Cornelius adds. “We have berries through

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Reader Service # 47 July. This is all contingent on Mother the southern fruits that generate the great- Nature, but right now, the crop looks good est excitement among consumers, according and demand looks to be adequate. In to Mike Jardina, president of J.J. Jardina Co. Georgia, we can see our production going Inc., a produce wholesaler on the Atlanta, up in the next three or four years. There GA Farmers’ Market. “I believe Southern is more acreage in Georgia coming and we peaches have a mystique of their own. You had 40 million pounds of production just just can’t get the same freshness when ship- last year, which was a record crop, and I ping from California or from another coun- think we’re going to have another excep- try.” He says because Southern fruit is avail- tionally good year.” able locally, location and ease of warehous- Thanks to their flavor, nutritional benefits ing and delivering Southern fruits can some- and the fact that they can be used with many times result in picking, packing and deliver- foods in a variety of recipes, consumer ing peaches and other fruits on the same demand for blueberries continues to grow. As day, enhancing their freshness even more.” a result, U.S. producers and those in Canada Amy London, executive director of the and South America are rising to the chal- Columbia-based South Carolina Peach Coun- lenge. Volume in the United States and Cana- cil, agrees, “Most consumers look for South da has risen steadily, from about 90 million Carolina peaches, not specific varieties. Our pounds in 1980 to about 332 million pounds growers produce more than 40 different in 2006 — 269 million in the United States varieties, providing a consistent stream of and 63 million in Canada. More than half of volume from May to September. Some tried- all highbush blueberries are sold on the fresh and-true varieties are Monroe, O’Henry, market to keep pace with ever-increasing Redglobe and Big Red.” demand, according to the U.S. Highbush “It may be difficult for retail chains to Blueberry Council, based in Folson, CA. helped blackberries and blueberries reach run promotional ads on varieties, as they their requirements for dormancy has also are available no more than 10 days at a SWEET SOUTHERN benefited famously sweet Southern peaches. time,” London counsels. “A better tactic may BLACKBERRIES “Obviously, we’ve had the best winter we’ve be to encourage store-level produce man- J&B’s Cornelius also raises blackberries, had in 20-plus years, with nearly 1,400 chill- agers to display in-store information when saying they are a smaller crop in the South, ing hours,” announces Chalmers Carr III, sought-after varieties are available. Addition- but a significant one, amounting to about 2 president and CEO of Titan Peach Farms al information about freezing and/or can- million trays per year from Georgia, North Inc., based in Ridge Spring, SC. “Our bloom ning these varieties may also bring a sales Carolina and Arkansas. “The season starts is delayed about seven to 10 days. That will lift, if they appeal to consumers’ sense of June 1 and goes until August,” he reports. correlate with a few days at the ripening nostalgia. Consumers should be told vari- “This has been a great season as far as chill. end, but we shouldn’t see any problems eties are short-lived and there may be a dif- We produce an excellent product in the with having peaches for Memorial Day.” ferent one next week. Promotions based on South. Typically, the berries are super-sweet Duke Lane III of Lane Southern variety alone can be tricky. That’s why pro- and we try to put them on the shelf when Orchards, Fort Valley, GA, where the compa- moting the characteristics of South Carolina they really taste great. Part of our success ny’s roadside stand features everything peaches is more encouraged.” comes from being here in the South with peachy, including ice cream and preserves, London says the South Carolina Peach exceptionally warm nights, which helps agrees, “We’re optimistic so far,” he says. Council has promotional funds that can be increase the sugar content. In cooler cli- “We’ve had a lot of rain. There is plenty of tailored to retailers’ individual needs. Recipe mates with cooler nights, they are often water, and this year, we had the best chill I brochures, retail guides and merchandising more tart.” can remember. We are getting a lot of ideas are also available at no charge. She Part of the allure of berries from the encouragement with new early varieties encourages chains to run specials with Southern states is their freshness, believes such as Flavor Rich and Carrot Red, mid-sea- coupons to improve sales. Mixon of Sunnyridge Farm. “They get to the son varieties, Blazeprince and Scarletprince, consumer quickly,” he says. “I see demand and a later variety, Julyprince.” LOOKING FOR LOCAL growing for berries, even in this struggling While individual peach varieties may not Members of the peach industry all agree, economy. Consumption has really stayed register with most consumers, Frank Fun- locally grown Southern peaches connote strong. There is excitement about berries, derburk, executive director of the Byron- freshness and flavor to consumers and especially when local berries are available. based Georgia Peach Council, says they intensify demand for these delicious fruits. There is always an increase in demand just ripen at different times, providing a seam- “The trend is toward locally grown produce,” because it is Spring. Retailers are doing such less supply of fresh Georgia peaches from according to the Georgia Peach Council’s a good job of merchandising and promoting May through August. “Consumers go by Funderburk. “We’re seeing that more each our berries, the only thing I would say is, quality and flavor when they bite into a season. It’s becoming more important for ‘Think big with Southern berries, both blue peach,” he reasons. “We’re able to provide consumers to know farmers. They’ve heard and black,” he adds. “Growers have respond- pretty consistent quality. We don’t really of Georgia peaches and we’re benefiting ed to demand and we expect plenty of pro- have any gaps in our season any more. from that being passed on from generation duction.” We’ve filled them with varieties. We have a to generation.” good, steady supply of fruit mid-May to Peach producers in the South are pre- PEACHES LOVE COLD, TOO early August.” dominantly family farmers, some in the The same cold winter weather that Peaches — along with cantaloupes — are third generation. That fact holds a certain

44 PRODUCE BUSINESS • APRIL 2010 down-home charm for consumers who what. They are grown here in the South and cheapest thing in the produce department. increasingly want to know the origin of the we appreciate the support that comes mainly We want to emphasize the value proposi- foods they eat. Some producers, like from the Eastern retail chains.” tion. We suggest that retailers show it on a Chalmers Carr and his wife, have been able Brim, who helped establish the Georgia per-pound basis. Consumers will think, ‘Oh to purchase an established operation after Grown program, suggests promoting flavor- that is a good value!’ managing it for several years. They have ful Southern cantaloupes at retail for best Given their popularity, simply pointing owned Titan Farms for 10 years. returns. “Putting them on ad certainly the way to the watermelon display is “Capturing the local or regional trend is helps,” he contends. “As we create con- enough to get consumers to buy, Hunt says. very important nowadays,” Carr explains. sumer confidence, we’ll get them to buy That’s why the watermelon board is provid- “Consumers are in tune with environmental more melons because they are so good.” ing colorful bin wraps that can be used to impacts and food miles. Taste is important, Southern watermelon crops will be a bit brighten up individual bins or can be too. A high quality product that eats well is late this year, but consumers no longer need stretched full-length to attract consumers’ important. We truly believe Southern peach- to be convinced to buy them, according to attention. “This is something retailers have es are a great eating peach because of our Gordon Hunt, director of marketing at the asked for,” Hunt asserts. “We encourage climate and soils, similar in reputation to National Watermelon Promotion Board, them to build big displays with these wraps. Vidalia onions.” located in Orlando, FL. The most important We’re continuing to offer POS material and Jardina of J.J. Jardina adds, “Consumers reason consumers cite for purchasing water- signage as we have in the past but, instead are always excited because everyone knows melon is “good taste,” according to con- of dropping off a stack of stuff, we send it how good locally grown products are for our sumer research. We don’t have to say, ‘Try electronically. It is cost effective and they economy and our daily diets. Local items watermelon. We think you’ll like it,’” Hunt can print it out.” always seem to taste better.” exclaims. “We have no negatives. It’s a Hunt also recommends emphasizing to “Consumers are interested in Georgia happy product. People hear ‘watermelon’ produce department personnel the impor- peaches,” asserts Lane of Lane Southern and they smile. It’s rare someone doesn’t tance of displaying cut melons because it Orchards. “I think the move by retailers to like it.” makes them more appetizing. promote local produce is consumer-driven. Perhaps the most important element in Jardina of J.J. Jardina concludes, “Water- We’re not growing for retailers. We’re grow- any merchandising scheme for watermelon melons and cantaloupes are a favorite for ing for consumers. Retailers also understand in today’s economy is communicating the local stores, again because of the taste and consumers love local peaches.” value of watermelon, Hunt explains. “It’s marketability. We handle these items pri- London concurs, “There is excitement still hard times for a lot of people,” he con- marily in bulk bins, thus creating a great dis- when South Carolina peaches come into har- tinues. “Watermelon, per pound, is still the play tool and easy handling.” pb vest each year. People revere our peaches. The peach is our state fruit. It is celebrated all summer with festivals, parades, pageants, peach-offs, recipe contests and more.”

CONSUMERS WANT CANTALOUPE AND WATERMELON If flavor is important for Southern peaches, it’s equally as seductive for Southern melons. The southern Athena variety of cantaloupe has taken consumers by storm since its introduction in 1995. A large, sweet variety, this melon is a favorite in the South, where it is the melon of choice in season. “Consumer demand for Southern cantaloupes has been very good the last couple of years,” reveals Bill Brim, owner and president of Lewis Taylor Farms Inc., in Tifton, GA. “The flavor of all the Athena melons is so good, so sweet, consumers really like it. We start picking about May 25 and July 15- 20 is the end of our season. We are not later than usual this year. We’ve seen tremen- dously wet conditions and have held off planting a bit because of the cold weather and rain.” In Florida, the season is about a week later than normal, according to salesman Scarbor- ough of BBI Produce. “Athena is the only variety we ship,” he explains. “It’s been very good over the last six to eight years. The deal has

grown and we’ve increased our acreage some- Reader Service # 19

APRIL 2010 • PRODUCE BUSINESS 45 Eight Tips For Spring Grape Sales Staying in communication with your suppliers and smart merchandising techniques will guarantee a sweet grape deal.

BY JODEAN ROBBINS Though a brief and quick season, the spring May 10th with Perlettes and Flames and most other grape deal presents tremendous potential for growers around May 14th to May 17th.” increasing grape sales and stimulating sum- By focusing on a few key areas, retailers can mer fruit enthusiasm. capitalize on this fast moving opportunity. “Promot- ing freshness, new crop season and a wide selec- “There is a distinct window of opportunity with tion of varieties, in addition to eating quality, will spring grapes,” says Jim Llano, sales manager for distinguish the new spring crop,” states Llano. Castle Rock Vineyards, in Richgrove, CA. “Spring grapes are among the first of the Northern Hemi- 1. STAY POSTED OF CHANGES sphere’s produce items of the new season with vol- Being aware of a few key changes affecting the umes warranting retail promotion. They create the deal is crucial to understanding the starting dynam- foundation of table grape demand for the season.” ic of the season. “Recent changes in USDA regula- “Mexican spring grapes are a great source of tions now require imported grapes to meet USDA profit for the produce department,” states Tom Wil- Grade specifications earlier than previous years,” son, manager of Giumarra Grape Division for the explains Llano. “This ruling, in addition to the Giumarra Companies, located in Los Angeles, CA. potential for tighter late supplies of red seedless “They are in a unique time frame just before the varieties from Chile, could bolster the Spring Deal.” start of summer while the weather is warm and the “With the change in date on the last arrival of consumer is looking for summer-type fruit.” Chilean product in the United States and some of The sheer nature of the unpredictability of the the difficulty in Chilean production, it could be a spring grape season, normally early May through good start out of Mexico,” says John Forry, vice early July, lends to the excitement of the deal. Don president marketing with DJ Forry Co. Inc., in Fazio, vice president at Fazio Marketing Inc., based Novato, CA. “Volume has been down and pricing in Fresno, CA, explains, “Timing depends greatly has been good. There hasn’t been a lot of extra on conditions in the growing area of crops in large fruit out of Chile.” Coachella but, given normal weather patterns in Differences in the Chilean deal this year may March and April, early shippers should start around affect the spring market. “The Chilean deal has a definite effect as normally large inventories flood the U.S. market into our season,” says Fazio. “How- ever, the crop on Flames from Chile is light this year and moving well, which means the Crimsons from Chile may be the same and sell out before we start in Coachella due to demand and light crop.”

2. KEEP FOCUS ON QUALITY The base of any successful program is quality. “The most important thing is having a good, fresh product,” says David Lukens, produce manager with West Point Market, a renowned gourmet food store, located in Akron, OH. “The most important thing is to start with a good quality grape.” “Retailers need to promote ‘new crop’ table grapes — freshly harvested and fresh to their stores

46 PRODUCE BUSINESS • APRIL 2010 — not grapes that have been in cold storage Seedless,” reports Keith Cox, produce cate- and shipped all the way from Chile,” states gory manager and buyer for Abingdon, VA- “Pricing doesn’t have Jerry Havel, director of sales and marketing based chain K-VA-T. “Growers continue to and for Rio Rico, AZ-based Fresh Farms. “We improve on testing new varieties of each fla- to be aggressive. A have the volume to promote and the fresh- vor for sweetness and holding power.” ness to help them sell.” “One of the biggest missed opportunities reasonable ad price “Stores who resist stocking Sonora grapes is late Perlette,” notes Pandol. “Many plant will move volume because stock USA grapes ‘are available’ are breeders try to include a Muscat flavor char- handicapping themselves,” says John Pan- acteristic, which mature Perlettes have. and bring margin dol, director of special projects for Pandol Everyone wants to jump and pay more for dollars into the Bros. Inc., headquartered in Delano, CA. Sugraones with minimum sugar when tasty “The two peak weeks from Mexico produce Perlettes are abundant May 25 to June 5. store. Our research more than the entire Coachella season. The amber tone common in mature Per- also shows that pro- Sonora production is three times what U.S. lettes is a merchandising challenge, but production is in May and June.” stores with robust sampling and tasting moting two or three Understanding taste and timing will bet- practices can make it work.” ter help plan volumes and promotions. “The colors together Perlettes and the first round of grapes can 4. STRATEGIZE ADS increases sales.” be a more sour variety,” cautions Lukens. The fast pace of the spring deal means “They look nice and hold up nice, but tend well-timed ads pay off. “Feature grapes,” to be a higher price and also tend to have a advises Fazio. “There are many holidays — Tom Wilson sour flavor. so they don’t move quite as fast. during this period available to set ads. Giumarra Companies As the season goes on, we get the sweeter Retailers should work with shippers to grapes such as Flames and the Sugraones establish good, sound ads that move volume variety so we move more volume.” and have a profit structure for all. Planning point,” says Havel of Fresh Farms. “We are ahead and setting ads is crucial. Ads make going to lock up a percentage of our June the deal and establish a profit for shippers business before we harvest the first grape in 3. KNOW YOUR VARIETY and retailers.” May. When it comes to reserving your vol- Central to the spring deal is the timing of “The fast pace makes ads even more ume for a June ad, the earlier the better.” the distinct varieties involved. “Flames important in order to move the fruit on a account for a majority of our volume, with daily and weekly basis,” adds Gonzalo Avila, 5. PARTNER WITH increasing volume expected in 2010 for vice president and general manager with SUPPLIERS Summer Royals and Sugraones,” reports Malena Produce Inc., in Rio Rico, AZ. “The The partnership between buyer and sup- Castle Rock’s Llano. “Summer Royals per- challenge is the timing of the beginning of plier becomes an even greater tool in a fast- formed well in 2009 and we expect contin- the promotable volume, but once it’s up and paced deal. “In this environment and econo- ued performance both domestically and for going, ads are a must, regardless of the crop my, we need to see buyers make a commit- export in 2010. We begin with Flames and outlook for the season.” ment to their growers early in the season to Summer Royals the first week in June, and “The desert deal depends on several ad ensure they get the right quality, variety we continue through early July. Thompsons periods,” acknowledges Fazio. “Mother’s and the grapes they need to have on their start around mid-June and Sugraones begin Day is May 9 so we will miss this date. But shelves,” explains Harley with Anthony around the third week in June and finish Memorial Day is May 31, and the late tim- Vineyards. “This is becoming more of a around the third week in July.” ing this year means it’s good for grape ads. strategic deal rather than a production-dri- As some varieties take over center stage, Flag Day, on June 14, may see limited ads, ven deal.” older ones are being cast off to the wings. but with good potential for U.S.-grown prod- Accurate and timely information can “Most of the old varieties are pulled out or uct. Father’s Day, on June 20, is another make or break the business. “Make sure being pulled out, such as Thompsons and opportunity, and of course, July 4th, is big.” you’re getting accurate information from Perlettes, for example,” states Fazio of Fazio While pricing and availability may pre- your vendor base,” suggests Harley. “Ensure Marketing. “The new plantings are mostly sent some challenges, retailers who perse- the Mexican deal has the production they Sugraones and Summer Royal.” vere will be rewarded. “You often don’t see say they have and Coachella has the volume “In Coachella we have been converting many ads before the second week of June they say they have. Accurate or inaccurate the Perlettes to the Sugraones variety,” adds because of price and availability,” says information has an effect on everybody — John Harley, sales manager with Anthony Forry. “Many retailers have had too many how we approach the market and how we Vineyards Inc., based in Bakersfield, CA. problems getting covered.” approach the retail trade. It is important for “Sugraones are the preferred variety “We would like to be able to advertise six retailers to make sure their vendor commu- because of their size and they mature a little to eight weeks during this time period,” says nity has the adequate supplies to at least bit sooner than Perlettes do.” K-VA-T’s Cox. “Advertising grapes greatly floor the product. Price becomes a sec- Growers continue to improve their offer- improves customer traffic flow into our pro- ondary issue.” ing through focusing on the best varieties. duce departments and also increases sales “If you want accurate information, listen “There’s a few more Princess and Crimson, and distribution.” to the late guys,” suggests Pandol of Pandol but it’s still dominated by Flames, Sug- When it comes to ad planning, the early Bros. “Last year’s estimate of 10.9 million raones, Blacks and Globes,” reports Forry of bird may get the worm. “By late April, we boxes out of Mexico had growers arguing DJ Forry. know what kind of crop we are dealing both higher and lower numbers. The num- “One up-and-coming variety is the Black with, both from a volume and quality stand- ber ultimately was two million higher, in

APRIL 2010 • PRODUCE BUSINESS 47 MEXICO’S COMMITMENT TO FOOD SAFETY

As a long standing supplier to the U.S., enacted an initiative strengthening the food safety certification program entitled Mexico takes very seriously its role to pro- authority of Mexico’s Agriculture Ministry Sinaloa Safe Tomato requiring a registra- vide safe, flavorful and healthy produce. Pro- to further enhance compliance with GAPs tion with Mexico’s federal department of ducers have long taken pride in their com- and to ensure the safety of food products agriculture, SAGARPA, as well as producer mitment to food safety and quality assur- grown in Mexico. food safety programs and third party ance. Both government and private sector audits. The state hopes to expand the pro- have a long legacy in working to ensure the PRIVATE SECTOR PUSH gram to cover many other products includ- highest quality and safest produce reaches The Mexican private sector and state ing chile peppers, bell peppers, eggplant, both domestic and export markets. governments are also diligently working on squash, green beans, mangos, oriental this issue. One of Mexico’s most compre- vegetables. A COMPREHENSIVE SYSTEM hensive attempts at a quality and food safe- Like the United States, Mexico has a ty certification program is the Mexico Cali- LOOKING TO THE FUTURE comprehensive food safety/phytosanitary dad Suprema (Mexico Supreme Quality or But Mexico is not resting on its laurels. regulatory regime. It includes nearly 250 MCS). MCS is a private, non-profit organi- Instead both government and private sec- mandatory compliance regulations cover- zation operating under a Mexican Federal tor are moving to develop additional sys- ing a wide range of agriculture production government program. It was formed by the tems for improvement in the food safety activities, including animal feed, organics, principal associations in the country for the arena. As the recognition of the limitations additives, packaging, insects/pesticides, purpose of collaborating with the federal of GAP and GMP programs has become processing, and transportation. There are a government on actions promoting certifica- evident, the governmental programs in number of federal agencies with responsi- tion and branding of Mexican food products. Mexico are now focused on developing a bility over food safety, including the Min- HACCP-based program for reduction of istries of Agriculture, Livestock, Rural Also, some producers and regions are risk of contamination, taking advantage of Development, Fisheries and Food going beyond their local and regional all the goals reached with the previous (SAGARPA); the Environment and Natural efforts to implement even greater pro- GAP-based programs. Training, promotion, Resources (SEMARNAT); and Health (SS). grams. In Guadalajara, the Mexican Asso- documentation, field studies and technical ciation of Protected Agriculture (AMHPAC) support are the main components of the Many Mexican growers have voluntarily is working on a Prevention Project based contamination reduction risk system to be implemented Good Agricultural Practices on the SQF Program, a food safety and established. Recognition to participant (GAP), and Mexican processors have imple- quality certification system endorsed by growers will also be a continuous tool to mented Good Manufacturing Practices the Food Marketing Institute. The state of enhance participation and maintenance of (GMPS). In 2007, the Mexican Congress Sinaloa, Mexico, has implemented its own the program.

FOR MORE INFORMATION: Please contact the Agricultural Office at the Embassy of Mexico :

HECTOR CORTES Agricultural Attache (202)728-1727 [email protected] 1911 Pennsylvania Ave NW • Washington, DC 20006

Reader Service # 83 Q&A – Confirming Food Safety with: Eric Viramontes CEO Mexican Greenhouse Growers Association and Luis Cruz, Director General, AVQ Consulting

Q: How are Mexican growers demon- their food safety programs were in place. ty programs in place. GAP’s and GMP’s are strating their commitment to food safety? Additionally, FDA OASIS reported most of no longer enough. The use of tools like the rejections of shipments at the Mexican HACCP (Hazard Analysis at Critical Control VIRAMONTES: Our members have a very border as related to labeling. There was a Points) as the basis of a food safety pro- clear understanding of the importance of 12% reduction of rejections in 2009 com- gram is needed. Traceability is another food safety and are very committed to pared with 2008. This information shows pending task. Most of food safety incidents achieving it in growing, harvesting and that food safety incidents at the border related to Mexico have not been conclusive packing practices. In most cases our grow- have been decreasing. in their findings. While the industry makes ers are carrying out certification programs efforts to identify the origin of products, proving this commitment via third party cer- Q: What specific programs or certifica- regulators should be able to use that infor- tification or Good Agricultural Practice tions are there to support the grower’s/ mation and take reasonable judgment (GAP) programs promoted by our federal exporter’s commitment? before pointing fingers. government. Every time I have accompanied someone from outside of Mexico to a grow- VIRAMONTES: Our organization has set ing or a harvesting operation here, they are the bar to promote the SQF standard as Q: What are the most important things always surprised to see how well our grow- our organization’s program. Our goal is buyers should know about food safety and ers are implementing food safety practices. that by 2012 every single one of our mem- Mexico? bers will meet this standard. We have the CRUZ: Since 1997, when the Clinton support of the Mexican federal govern- CRUZ: Mexican produce has the same Food Safety Initiative was announced, Mex- ment, agencies like Mexico’s Supreme level of assurance in safety and quality ico´s produce exporters started to work in Quality, and the SQF representative office compared with U.S. grown produce. A GAP’s and GMP programs. In the early 90’s in Mexico. report in 2009 by Texas A&M University private certifications like SCS and Primus shows the same level of incidence of food Labs were adopted by Mexican exporters. CRUZ: Currently, from the official side, safety issues in U.S. grown as in imported At the beginning of this decade, Mexico there are two major programs. The first is produce. A decision of purchase should be Supreme Quality and SENASICA’s certifica- SENASICA’s certification, which is the Mex- made based on market conditions. There tion (both provided by the Mexican Govern- ican Ministry of Agriculture GAP’s and are efforts everywhere in Mexico to ment) were the standard for a Mexican GMP’s program, implemented in more than improve performance and commitment in produce exporters. Now, since 2008, inte- 800 growing and packing units. Another food safety. Initiatives like the AMHPAC grated quality and food safety manage- official program is Mexico Supreme Quali- Food Safety Program and other industries ment systems like SQF are being adopted ty, a GAP’s and GMP’s - based certification aligning their programs to SQF show how to demonstrate the high level of commit- implemented in over 300 produce growing Mexican suppliers are willing to adopt the ment by implementing the highest stan- units, but also covering 64 products other highest standards available. Lastly, Mexico dard in the produce industry. Just recently, than fruits and vegetables. has always been open to visits and inspec- Mexican produce exporters were actively tions by U.S. buyers and regulators. Orga- participating in the discussion for estab- Q: What challenges still exist? nizations like the Fresh Produce of the lishing the metrics for food safety in Toma- Americas, CAADES and the Mexican Trade toes, Leafy Greens and Melons that were VIRAMONTES: One major challenge is Office organize visits to fields and packing used as a basis for FDA’s draft guidance getting everybody involved in the produce units. In 2010, FDA has visits scheduled to issued in 2009 for such commodities. industry to address this issue with the 30 growing regions within 12 states in Mex- same criteria or a universal standard. We ico, for inspection of tomatoes, bell pep- Q: Is there real-world data to support have to realize that this is something any- pers, cucumbers, green onions and hot this commitment? body dedicated to produce must incorpo- peppers, among others. rate and commit to, regardless of what CRUZ: Mexico has kept a growing trend part of the world they are located in. VIRAMONTES: We are committed to in produce exports to the U.S. since 2005. sending buyers quality produce 12 months In 2009, Mexico exported 65% more veg- CRUZ: Everyone involved in the food dis- of the year. Our produce is world-class. etables and 35% more fruit to the U.S. than tribution chain should play a role in pre- Growing in a greenhouse environment also in 2004. Comparing 2009 and 2008, Mexi- serving food safety and quality of produce. makes it easier to meet customer expecta- can exports increased 2% in tomatoes, There is no use for a grower in Mexico or tions on quality, size, availability, and 11% in avocados and 23% in papayas. New California to do what they have to do if the more. Mexico growers have very high stan- categories like Guavas got their market distributor or warehouses do not have a dards for all the right reasons, your health open. This couldn’t be achieved without a minimum level of GMP’s implemented. and safety. Buyers need to come down and consistent effort from growers in ensuring Additionally, we need to upgrade food safe- see it for themselves…we welcome you!

VISIT THE MEXICO PAVILIAN WHILE AT CPMA, UNITED AND THE FMI TRADE SHOWS 50 Reader Service # 51 PRODUCE BUSINESS• APRIL 2010 FREQUENT PROMOTION 7. USECREATIVE AND 6. CONSIDERPACKAGING able pricemoves product inthe retail set- nent displaysof qualityproduct atareason- more thanonevariety atatime.” when advertising, itisgoodto advertise it’s anewcrop,” suggestsK-VA-T’s Cox. “Also, floor. “Retailers shoulduse signage stating reminded ofthemonthesales- are sumers be thenewtrend inpackaging,” addsCox. packaging, althoughclamshells continueto just isn’tthere.” should work, buttheconsumerbehavior should becauseconceptually,theythinkit stores pushitalotharder thanthey — clamshells are kindoflike theorganic deal Grapes in had mixed experiences. tain timesoftheyear. Supermarkets have clams, butare nowgoingbackto bagsatcer- tion. Limitedassortmentstores hadgoneall packed atoriginorrepacked neardestina- Pandol. “Theclubstores are allclams, either Llano. clam packs,” saysCastleRock’s for 4x4and10x2 ing demandfrom retailers continuing to grow andwe expect increas- however demandfor clampacksare bags, pack themajorityofourgrapes in18-lb. deal, clamshellsare growing ininterest. “We plainbags.” ing way to and theunusablepress-to-close bagsare giv- As mostretailers don’tclosebags, zipbags boxes are goingbackto taller, 6-downboxes. should be,” saysPandol. “Too short,5-down son.” ume willincrease onclamshellsthissea- and 4/4-lb. unitsinamastercarton. Thevol- Many retailers use8/2-lb., 10/2-lb., 8/3-lb. customers lookingatthistypeofpackage. Clamshells are very active, withmanynew 20-pound netinmostlystyro units. i Fazio ofFazio Marketing Inc. “Bulkpacking is 18-poundnetcartons inbags,” explains explains DJForry’s Forry. clam orclubpackand3percent loose,” mostly 70 percent bagcarton, 27percent are makingtheirway to market. “It’s still still thebag,althoughsomemodifications mal crop pastJune1.” tragically lowandthelategrowers saidnor- erally speaking,theearliergrowers argued spite ofweather problems inharvest. Gen- very limitedandmostlyexported, with s “Advertising, promoting andlarge, promi- Grapes canbesuchaneasy sellifcon- “The clamshelldealisinteresting,” adds stillthedarlingof Though bagsare “Packaging isgoingback to theway it “The normalpack,permarketing orders, The preferred packaging onthisdealis “At thistime, we prefer thebagsfor TRACEABILITY 8. CHECKINTO tion duringthetimeframe,” advisesCox. possible to capitalize onsalesanddistribu- grapes thatyoushouldpromote asoften shortavailability windowwiththespring a tion duringthisshortperiod.“There issuch and satisfaction for everyone.” message to theshopperisoneoffreshness one, andgives achoiceofpackstyles. The between asmallerpurchase andalarger bags thenormalweight. Thisoffers achoice Havel. “Make theclamshells4-lbs. andthe excitement withconsumers,” suggests clamshells andhalfbags, maycreate greater together increases sales.” shows thatpromoting two orthree colors dollars into thestore. Ourresearch also price willmove volume andbringmargin not have to beaggressive. Areasonable ad ting,” saysGiumarra’s Wilson.“Pricingdoes vest Markfor itstraceability program. Avila. level,” reports Malena’s the caselevel andmayadoptitatthebag vineyards andare GlobalGAP Certified.” ing to GS-1codestandards throughout all have conformed allpackag- Additionally, we with trace-back to pack-date, ranch andlots. computer systeminDelanoandprovide us tems inCoachellaare integrated withour Llano. “Ourreceiving andinventory sys- including Coachellafor several years,” says ability inallofourvineyard operations, are nowrealizing itneedsto bedone.” Fazio Marketing. “However, someshippers and theNorthern operation,” saysFazio of traceability program in placefor theDesert the plateinthisarea. “We have ourGTIN ers intheUnitedStates.” achieve ahigherstandard thanmany grow- European Union,growers inMexico have to exported to theFar East,Englandandthe Since afair amountofthesegrapes are cations suchasMexico-GAP, GlobalGAP, etc. traceability andcertifi- ation withrespect to Associ- done bytheMexican Grape Growers says Wilson.“Iknowthere hasbeenwork traceability solutions,” dards withrespect to viding traceability.” andmore shippers eachyearpro- more are modities includinggrapes,” saysCox. “There increasingly more important inallcom- traceability. “Traceability hasbecome more growers andretailers are lookingat Success canbehadwithfrequent promo- “Larger displays, perhapswithhalf Fresh Farms isalsopartnered with Har- “We are currently usingHarvestmark at “Castle Rock hasbeendedicatedto trace- stepping upto are Increasingly, shippers “Giumarra isaheadofgovernment stan- As food safetyconcernslinger, more and pb Msrosaeawyt e oeout of getmore expensive meats. You way canuseasmallerpor- to a “Mushrooms are singleupscaleeateryinChicago,IL,says, a HotChocolate, Mindy Segal,ownerofMindy’s ly protein andtopping itwithmushrooms. orcuttingbackonacost- meatloafor burger, a protein byaddingthemto ground meatmix in tional benefits.” Mushrooms are lowincostandhighnutri- healthful, butcanalsohelpcontrolfood costs. CA, says, “Vegetarian cuisine isnotonly at theUniversity ofSanta Cruz,inSanta Cruz, rooms offeragreat solution.” sessions creating vegetarian dishesandmush- amount oftimeinresearch anddevelopment cake Factory, says, “We spendaconsiderable and corporate executive chefat TheCheese- Okura, vicepresident ofculinarydevelopment create sophisticatedmeatlessdishes. Robert in CalabasasHills, CA. Factory, based plates menuatTheCheesecake are theNo. 1-sellingappetizer onthesmall in thecasualdiningsetting.For example, these room SixDollarBurger. Angus Burger andCarl’s Jr.’s Portobello Mush- Burger, McDonald’s Mushroom andSwiss Burger King’s Mushroom &SwissSteakhouse GourmetMushroom Swissburger, Wendy’s percent in2000.Someexamples include burger menupenetration, compared to 1.9 chain sector hada7.2percent mushroom According to MenuMine, in2009,theQSR premium orgourmetburgers. feature to playedalarge role intheQSRrace rooms have casual andQSRsegments. For example, mush- mushrooms cameatchainsinthecasual,fast time periodin2008. also started to showanincrease over thesame monthly mushroom shipments to foodservice headquartered inOakPark, IL.Inlate2009, published bytheFood Research Institute, to MenuMine, amenuinformation database by doubledigitsfrom 2006 to 2009,according rooms inanumberofmarket sectors jumped CREATIVE USAGES nmenussince2005. on 12.5 percent increaseinmushrooms firm, Technomic Inc.,therewasa Chicago, IL-basedmarketresearch According toa2009reportby are turningupmore frequently onmenusallacross theboard. With creative usagesandcost-savingtechniques, mushrooms Make Way ForMushrooms BY CAROLBAREUTHER,RD Operators canusemushrooms to extend a Meanwhile, DwightCollins, executive chef usingmushrooms to Another trend ischefs Stuffed mushrooms continue to bepopular Some ofthestrongest growth inmenued In addition,categoryincidenceofmush- ue T items. tured LTO approximately 6millionservingsofthefea- of fresh mushrooms andcustomers ordered customers anincremental 1.5millionpounds ed five mushroom limited-timeoffers (LTOs). December, 2009.Sodexo promot- September to wide, for aseasonal promotion thatran from sity, businessandhealthcare venues nation- provides foodservice for 2,400college/univer- Gaithersburg, MD-basedSodexo, Inc., which SALES MUSHROOM PROMOTIONS MAKE control yourfood costatthesametime.” vor bypairingitwithmushrooms, whichhelps tion ofprotein, butkeep thatdeep,earthyfla- During thepromotion, Sodexo served its The Mushroom Councilpartnered with pb Susser ofChefAllen’s, inMiami,FL. Chermoula GrilledCreminibyChefAllen Ben deVries ofLuella,in San Francisco,CA. Arugula SaladinaParmesanTuile byChef St. Helena,CA.ShavedPortabellaand Chef Todd HumphriesofMartiniHousein Aioli andCreminiMushroomDuxelleby From top:PortabellaBurgerwithTruffle APRIL 2010 •PRODUCE BUSINESS

51 Reader Service # 33 Photos courtesy of The Mushroom Council M E R C H A Eight Ways To Sweeten N D I S Sweet Onion Sales I N Stocking truly sweet onions, offering them in more than one SKU and G promoting their many uses are just a few ways to make sales bloom.

R BY CAROL BAREUTHER, RD E V weet onions were once a seasonal I specialty. Today, year-round avail- E ability is a major reason why onion E consumption has increased 63 per- W cent in the last two decades, from S12.2 pounds per person in 1983 to an estimated 20 pounds per person in 2008, according to the Greeley, CO-based National Onion Association. Mark Luchak, director of produce and floral operations at Rice Epicurean Markets, a 5-store chain based in Houston, TX, says, “For us, sweet onions are starting to over- take sales of storage onions. I think that’s because they have a mild flavor that more people can enjoy.”

1. SELL ONIONS THAT ARE SWEET Sweet onions have recently been the fastest growing items in the onion category. Sweet onions accounted for 26.2 percent of total onion category dollar share in 2009, growth opportunity for this category.” er, growing practices and seed variety. Antho- according to the Perishables Group, a Chica- “Retailers can assure customers that their ny Cowart, owner of Cowart Inc., in Lyons, go, IL-based market research firm that tracks sweet onions are truly sweet by randomly GA, says, “The sweet onions category has and analyzes retail sales data of fresh foods. testing crops with a Certified Sweet pro- become diluted over the last 5 to 10 years.” Marty Kamer, northeast sales office man- gram,” says Barry Rogers, president of the “The solution,” according to Kamer, “is to ager for Keystone Fruit Marketing Inc., head- Sweet Onion Trading Co., located in Mel- consistently meet consumers’ expectations quartered in Greencastle, PA, asserts, “Sweet bourne, FL. “This is a pungency test that for flavor and mildness. This is what will onions have been driving growth in the onion measures the ratio between sugar content continue to drive category sales.” category for the last three to four years.” and pyruvic acidity of the onion.” “More importantly,” says Wendy Bran- John Shuman, president and director of The quickest way to turn off a sweet nan, executive director of the VOC, “Selling sales for Reidsville, GA-based Shuman Pro- onion buyer is to burn them with a pungent a sweet onion that is truly sweet is impera- duce Inc. and chairman of the Vidalia onion. This is especially true when con- tive for the survival of the industry.” Onion Committee (VOC), in Vidalia, GA, sumers put premium dollars down on what agrees and adds, “Consumers value the mul- they believe is a mild-tasting onion. “Sweet 2. STOCK A tipurpose use of sweet onions, making them onions that are not sweet are what I call YEAR-ROUND SUPPLY the fastest growing segment of the onion ‘scam sweets,’ or lower-priced onions that are Rice Epicurean’s Luchak reminisces, category. Based on consumer trends, we marketed as sweet,” explains James Johnson, “Years ago, there were the Texas 1015s and believe that the sweet onion category will vice president of Carzalia Valley Produce Vidalias in the spring and a few Walla Wallas continue to grow over the next few years Inc., in Columbus, NM. “It’s disheartening.” in the summer and that was it for sweet while the yellow onion market will remain Onions can indeed vary widely in their onions. Now, there is a 52-week supply, flat. Consumers perceive more value with sweetness. Sugar and pyruvic acid are two although we did see a gap this winter when sweet onions. Therefore, there is more variables, but so are the soil conditions, weath- Peru finished up early and the 1015s hadn’t

52 PRODUCE BUSINESS • APRIL 2010 Reader Service # 31 M be more difficult due to this being the rainy E season, which effects growing, sizing and Marketing In Trying Times the quality of the onions.” R R weet onions are premium products. provide a nice value purchase.” The Carzalia Sweet harvest in New Mexi- C They are also one of a number of Set the price point for a 2-lb. bag of co runs from June through September. Johnson of Carzalia Valley reports, “The big H Sfresh produce items that have taken sweet onions under $2, suggests Derrell a hit in sales due to the current economic Kelso, Jr., owner and president of Stock- window for us is June, although that has A downturn. In fact, sweet onion sales ton, CA-based Onions Etc. “There’s no way closed somewhat with Vidalias out of stor- N declined in 2009 over the year prior, los- you can sell a bulk jumbo or colossal age and when the Walla Walla crops starts ing 0.6 dollar share points, according to sweet onion for under a dollar a pound, early. That’s why we started to trial our seed D D data provided by the Perishables Group, a but you can with smaller onions merchan- variety three years ago in growing areas like I Chicago, IL-based market research firm dised in a bag.” Colorado, Idaho and Washington for that S that tracks and analyzes retail sales data John Shuman, president and director of July to September time frame.” L&M Com- of fresh foods. sales for Shuman Produce Inc., based in panies, based in Raleigh, NC, will now mar- I Barry Rogers, president of the Sweet Reidsville, GA, says “Retailers can maximize ket the Carzalia Sweet. N Onion Trading Co., based in Melbourne, profit opportunity by reinforcing sweet Empire Sweets are a New York-grown FL, admits, “We have seen a decrease in onions’ versatility and multiple usages as sweet onion available from August to G some areas and feel, as a result, that the compared to conventional onions.” November. Richard Pazderski, director of hybrid onion at the $0.59 per-pound price This is especially key as more con- sales and marketing for Bland Farms LLC, in R point has gained back the market share. sumers are now eating at home rather Glenville, GA, which bought the farming The typical retail price for sweets is than dining out. Curry adds, “Tie your operations and trademark for the Empire E between $0.99 and $1.49 per pound.” sweet onions to various efforts you may Sweets last spring, says, “Peruvian product is V What can retailers do to regain sales? have going on. During the summer available during this time frame and this Make sweet onions a featured item at the months, sweet onions are a must for any domestic program is a complement to that I start of the month, especially in today’s ad promotion featuring a summer barbe- supply. We see continued room for domestic E economic climate, says Matt Curry, presi- cue. In the spring, sweet onion salads are expansion. It’s just good business.” W dent of Curry & Co. Inc., headquartered in quite popular. In the winter, sweet onions Brooks, OR. “Many customers stock up on are great in soups and casseroles. Don’t 3. MERCHANDISE BY food basics at the start of the month coin- treat them as just another part of the LOCALE AND BRAND ciding with their paycheck. Bagged sweet onion category; treat them as the premi- The jury is out on whether it’s most onion sales at the start of the month can um product they are.” pb effective to market sweet onions by growing region or brand. There are advantages of both methods. Keystone’s Kamer says, “Some customers will specifically look for started yet.” May, while Georgia’s Vidalia season runs the Texas 1015s, Vidalias and Walla Wallas, This February, Schnuck Markets Inc., a from mid-April to early September, thanks for example. Others just want a mild, flavor- St. Louis, MO-based chain, introduced a new to controlled-atmosphere (CA) storage that ful taste experience.” sweet onion to its customers called the Ever- extends the season through July and On the growing region side, Marvin Lyons, Mild. This is a yellow onion variety devel- August. At the same time, there are Imperial produce director at Bigg’s, an 11-store chain oped by the Monsanto Company. Using tra- Sweets from California that ship April based in Milford, OH, asserts, “Consumers ditional plant breeding techniques, it is through June, and Walla Walla Sweets out of look out for onions from a certain area. For grown in an area of the Pacific Northwest Washington from June through August. example, if you put ‘Peru’ in an ad and you’re where the climate is dry and there are Peruvian onions come into the market in caught off guard by either the season drying sandy, low sulfur soils. Thus, this U.S.- September and will continue into February. up or your supplier switching areas, which grown variety is ideally a fresher alternative Matt Curry, president of Curry & Co. happened this past season, customers will be at a time of year when most sweet onions Inc., in Brooks, OR, says, “Occasionally, you disappointed. They look for the sweet onions are imported. Mike O’Brien, vice president see a gap as you switch between varieties from Peru. They also look for the Vidalias. of produce and floral, said in a release about since sweet onions don’t store nearly as long That name has a lot of recognition.” the EverMild’s arrival in-store in early Feb- as regular onions, due to their higher sugar Kevin Hendrix, vice president of Hendrix ruary, “Our buyers have sweet onions com- levels. It’s important that retailers work Produce Inc., in Metter, GA, agrees and ing in from across the globe in every season, closely with their sweet onion supplier to adds, “Vidalias created a new category in the but from February to when the Vidalia have seamless supplies of sweet onions and onion deal twenty years ago. Today, con- becomes available in April, there has been a maintain the momentum.” sumers know the name Vidalia and ask for gap in the availability of domestic sweet Other growing areas offer sweet onions it by name.” onions — until now.” In-store sampling and through the year that fill in specific niches. Indeed, the name Vidalia does have a demonstrations introduced the EverMild “For example,” says Robert Schueller, direc- strong marketing pull. According to a con- onion to Schnucks’ customers from the tor of public relations for Melissa’s World sumer study conducted by the Cambridge, onion’s arrival in early February through the Variety Produce Inc., based in Los Angeles, MA-based Opinion Dynamics Corporation, end of March. CA, “Maui onions are available out of on behalf of the VOC, nearly 75 percent of Typically, sweet onions are available out Hawaii from mid-March until late August consumers named Vidalia onions as their of Chile, Ecuador, Guatemala and Mexico and they peak from April to July. Growers favorite compared to other sweet onions, from January to March. Texas 1015s start try to offer them year-round but sometimes, and a third of consumers were willing to pay harvest and are in the market from April to the September to February time frame can more for Vidalia onions.

54 PRODUCE BUSINESS • APRIL 2010 Reader Service # 18 M In addition, Vidalias are the dominant Sweet Onion, a proprietary seed and trade- E variety among all sweet onions, according to marked product. While the name remains the VOC, outselling Texas 1015s five-to-one the same year round, its source follows the R and Walla Wallas seven-to-one. In addition, seasons from California to Texas, Mexico C Vidalias represent 16 percent of all onion and Peru. John Battle, president of Traverse City, H sales nationally, whereas all other sweet onions combined represent 20 percent. The MI-based Battle Produce Exchange Inc., A VOC’s Brannan says, “Vidalias have become which markets the Oso Sweet brand of N the ‘Kleenex’ of sweet onions. However, it’s onions, says, “It is more important for a con- important to know that Vidalias are season- sumer to gain loyalty to a brand if they are D D al. All Vidalias are sweet, but not all sweet concerned about buying a safe and consis- I onions are Vidalias.” tently sweet onion. After all, companies S The move from region to region through- stake their reputations on their brands and out the year provides a prime merchandis- have a vested interest in providing a good I ing opportunity. Curry & Co.’s Curry sweet onion.” N explains, “Our opportunity as sweet onion Delbert Bland, president and CEO of marketers is to give retailers the tools to cel- Bland Farms, remarks, “Branding is especial- G G ebrate the attributes of each sweet onion. ly important in products that are less com- There are fun and interesting stories to tell moditized. For example, if I’m buying an R about each different onion and we need to apple, I’m going to buy it by type. If, on the get those messages to the consumer.” other hand, I’m buying strawberries, I’m E On the brand side, companies such as going to look for a particular brand. There V Shuman Produce offer a 52-week supply of are a few commodities like this, and sweet sweet onions under its RealSweet brand. onions are one of them. The label carries a I This includes Vidalia onions, as well as lot of influence. “ E sweet onions grown in Peru, California, W Texas and Mexico. Shuman says, “This pro- 4. ADD A BAGGED SKU vides a year-round supply of high quality At Bigg’s, Lyons reports, “We’re selling sweet onions from a single source.” more 3-lb. This is a change. We use to just Likewise, Melissa’s markets its Perfect sell a jumbo sweet onion bulk. Now, we Reader Service # 61 Reader Service # 66

56 PRODUCE BUSINESS • APRIL 2010 Reader Service # 16 W M W M G D C N N H R R A E E E G S D C V N N H R R A E E E S V I I I I I I 58 Reader Service # 14 Reader Service # 21 PRODUCE BUSINESS• APRIL 2010 A week window.” shorteneddowntoafive-vest windowwillbe eight weekharvest window.Ithinkthehar- weknowit.Normallyhavebefore asixto here“I’ve andgone gotafeelingitwillbe lateduetoacoolspring,headds, willbe crop September.” onionsfor everyone, any butthere leftin might notbe willbe There storage thisyear. alotofonionsin willbe “I don’tthinkthere not have amplesupplies,”Herndonpredicts. andover alltheVidaliacustomers will crop in April. sometime more, withalateharvest beginning overall off25percent Vidalia or being crop Herndon Jr. ofLyons, Farms Inc. GA,seesthe remain inthefields.The president ofL.G. since 92to93percent ofhisonionstands ample suppliesforretail promotions. agoodqualitycropwith man stillexpects from weathertodisease.Shu- tors ranging amount islostevery year duetovarious fac- alarming, sinceatleastone-halfofthis the overall butdoesnot considerthis crop, aminimum20to25percent lossof expects onions. BasedinReidsville,GA,Shuman largest ofPeruvian grower/importer sweet operationandthirdonion grower/shipping president ofVidalia’slargest sweet second supply. cent from anaverage ayear ago,itshouldbe down20to25per- willbe thecrop believes inearlyMarch. Even hesaid thoughhe dict,” for retailpromotions, butit’stooearlytopre- GA. “I’mnotsure amplesupplies there willbe BlandFarms,grower/shipper, LLC, Glennville, er ofVidalia’s largest sweetonion average volume, butqualitycrop.’ thetradestillhashighhopesofan obstacles, Yet, withjumbos. particularly despitethe a vest hasobservers higherprices predicting and southTexas har- leadingintotheGeorgia ShortsuppliesofsweetonionsinMexico gia. andshippersinSoutheasternGeor- growers percent fromas 30 ayear ago,according to toreduce suppliesasmuch and isexpected nd fewer opportunities for retail promotions,nd feweropportunitiesforretail With FewerJumbos With SweetOnionSupplies Vidalia Retailers ShouldExpectAverage Steve Roberson, presidentSteve ofRoberson Roberson, Hively atBlandFarms agrees. Notingthe “We willhave amplesuppliesforourown Bo Herndonconsidershisoperationlucky JohnAt ShumanProduce Shumanis Inc., andgeneralmanag- Michael Hively isCFO ization oftheVidalia sweetonioncrop with suchdutiesasplantingsandfertil- cold, rainy winterhasplayed havoc growing the granex onionvariety intheSali- thegranex growing observes. string bagsontheotherside,”Hively one sideofthemachineandproduce draw (vert)“We’ll fresh abletodocarry bagson be machineforconsumerbags. onion-bagging anew BlandFarmsHively hasinstalled says as chairmanoftheVidalia OnionCommittee, service fortheircustomers. toproviding better from efficiency, ranging in theiroperationsfrom lastyear forreasons dles Peruvian sweetonions. alsohan- other withsweetonions.Roberson supplyingeach from Chileandthetwo willbe sweetonions distributorofOSO American workingwithan deal. Hehasrecentlystarted tohave ayearfirst forRoberson around onion company toplant16 rows ofcornatatime. acquired, been whichnowallowsthe have added.Twobeen newsweetcornplanters machineshas Anewonionbagging tractors. onthefarm’s installed auto steeringhasbeen onion companiesthathav VIDALIA? WHAT IN NEW IS pack,”Tuminopromotable says. avery ply thisseasonbutmediumswillbe inshortsup- large onionswillbe cent. Iexpect per- 30 lossofabout an industry-widecrop with freezing wintertemperatures resulting in hampered byheavyrainsandcompounded lateautumnplantingwas said, That being we needtheseonionstosizeintojumbos. during thelast20dayspriortoharvest and following initialplantings. place aslateJanuary, whichistwomonths some replantings duetorainswere taking Farms inVidalia,for Stanley GA.Hesays John Tumino headsVidalia sweetonionsales many onionswillgointostorage. seen”how “Itremainsever, tobe hecautions, adequate suppliesforthefresh market.How- andheisadvisingthemtherethe crop” willbe are “showinggoodinteresthis customers in percent feweronionsthisyear from Vidalia, time inApril.”Even thoughhesees10 to30 “some- this spring,butharvest willstillbegin onetotwoweekslate the Vidalia willbe crop O nion Corp.,basedinHazlehurst,GA,believes L.G. HerndonJr. Farms: Bland Farms: Shuman Produce: OnionCo.:This yearRoberson marksa Following isaglimpseofVidalia sweet occurs “Most oftheplant’sbulbgrowth inCharlotte,NC, At RichterandCo.Inc. In his second one-yearIn hissecond term YBL MARTIN BILL BY h opn isnow The company e reported changes Herndon says carry a jumbo or colossal in bulk and a Mesh is an economical packaging materi- medium/large in bagged. That’s two rings.” al. However, more expensive, high-graphic Some 65 to 70 percent of sweet onions bags can spur sales by providing consumers nas, CA, area. The sweet onion variety helps are sold in bulk, reveals Bland’s Pazderski. with information. “High-graphic bags are the firm fill a window in supplying onions on Sweet Onion Trading’s Rogers adds, becoming increasingly popular,” remarks a year around basis, according to Shuman. “Some consumers may prefer to buy sweet Rogers, “due to their eye-catching designs The California product will be available dur- onions loose to save money on the packag- and pertinent information.” ing July and August and helps bridge a gap ing and pick quality. However, a growing Shuman Produce’s Shuman agrees. “Prod- between the Vidalia sweet onion spring deal trend is consumer packaging in 2-, 3-, 5- and uct packaging that offers see-through bag and the company’s winter onion supplies 10-lb. bags.” material, onion varietal identification, menu from Peru. During the 2009-10 Peru Sweet The most common bag sizes are 3- and 5- ideas and preparation tips will entice con- onion season, the company increased its lbs., says Curry. “With some varieties of sumers to purchase more. All of our con- product by 25 to 30 percent. sweet onions, we are also doing a 2-lb. bag, sumer packages include recipes, storage tips, Shuman has been in the year-round which can provide a nice price point.” health benefits and nutritional information.” sweet onion business for over 12 years and has expanded its growing operations into Mexico, Texas, California, and continues to source product from Colorado and the Pacif- ic Northwest. Concerning Shuman’s food safety program, sales manger Brandon Parker states, “We have elevated...to Primus Platinum Pro- gram. This gives our partners immediate and unlimited access to our supply chain allow- ing them to view audits and corrective actions in real time. We believe this increases the level of trust and confidence for our partners. We are committed to building strong, productive, year-round partnerships and have taken many steps to empower our retail customers to service their customer base with the best quality and safest available product in the market Stanley Farms: Tumino of Richter, who handles Stanley Farms onion sales, says the farming operation continues to make capital investments in environmental and efficient energy sustainability. The completion of another 20,000-bushel forced-air wall plenum drying room increases drying capacity to 80,000 bushels. These four high-tech European designed rooms each utilize 5 million BTU natural gas blowers with 40 HP fans to recirculate heat and control humidity in a closed system. The dryers use proprietary 80 bushel bins, four times the standard capacity. The result is less handling and drying time and reduced energy cost. And, it produces a cleaner, brighter, well-husked onion. The drying rooms also convert to refrigerated storage increasing Stanley Farm’s available storage capacity to 200,000 bushels. Also new in 2010, a grader will employ a British engineered vacuum extraction system that removes loose dust, dirt and husk and then collects it for soil compost. This effort will result in a cleaner and safer environment. Stanley Farms is also in the process of converting field irrigation systems from diesel to electric and eventually solar power. pb Reader Service # 68

APRIL 2010 • PRODUCE BUSINESS 59 M 5. HANDLE PROPERLY TO keting director for Marketing Fresh Produce Kathy Fry, director of marketing for the E SHRINK SHRINK LLC, located in Nixa, MO. “It also makes for Walla Walla Sweet Onion Marketing Com- Rogers notes, “The best way to handle an attractive display.” mittee, in Walla Walla, WA, says, “Our sea- R sweet onions is to keep them in as consis- son is only nine to 12 weeks, so make a big C tent an environment as possible. A cool, dry 6. BUILD EYE-CATCHING splash with a big display and merchandise onions out of well-signed bins. Hang a big H room is preferable.” DISPLAYS Steve Roberson, president and owner of Sweet onions are best displayed when banner over the display to let customers A the Roberson Onion Corp., based in Hazle- something is done to set them apart, says know the Walla Wallas have arrived.” N hurst, GA, agrees and adds, “The dryer and Curry. “Perhaps it’s unique signage and Carzalia Valley Produce offers branded, cooler, to the extent practical, the better the point-of-sale materials or a stand-alone dis- bi-lingual bins that hold 60 10-pound mesh D D shelf-life.” play in peak season,” he details. You can use bags of sweet onions, says Johnson. I The most common mistake with sweet the high-graphic bags as a break between “They’re retail-ready, meaning all the pro- S onions is to treat them as regular onions, regular bulk items. Our own sweet onion duce staff has to do is set them on the floor says Curry & Co.’s Curry. “Sweet onions boxes are bright and colorful and can be and sell.” The company is trialing the bins I require a more gentle approach. Keep them used for waterfall displays or separate stand- in various Piggly Wiggly stores. N in the cooler until you’re ready to put them alone displays as well.” Maintain a year-round assortment of on your shelves. Use proper rotation tech- Sweet Onion Trading’s Rogers adds, “Dis- sweet onions in different packs and adjust G niques and as with the rest of the depart- play sweet onions in a color-break to draw according to your shoppers’ demographics, ment, the better the display looks, the better attention, for example, next to tomatoes and advises Shuman Produce’s Shuman. “Con- R the sales.” red onions.” sumers prefer a variety of packaging More specifically, Shuman recommends, At Bigg’s, sweet onions are usually dis- options. This includes bulk, smaller bag and E “To prevent bruising, decay, sprouting and played adjacent to storage onions, says larger bag offerings. When space is limited, V quality loss, don’t throw, toss or drop bags or Lyons. “We’ll move the sweet onions to end retailers must focus on core items, such as boxes of sweet onions. Don’t stack bags over caps for promotions or during holidays bulk and possibly one size bag offering.” He I 8-ft. high. Don’t dump into display bins and when people are cooking more.” adds, “Supplement merchandising efforts E remove onions that are bruised or cut.” Luchak, at Rice Epicurean Markets, says, through attractive, educational point-of-pur- W “Display-ready containers can reduce “We like to build displays with high-graphic chase materials to communicate type; use shrink and lost profits by reducing handling cartons that sell the story of the onion.” options and nutrition information about and therefore bruising,” recommends Steve Bins are effective for increasing display sweet onions.” Phipps, principal owner and sales and mar- space during peak availability periods. One of the most important types of POP is proper signage for the onions, says the VOC’s Brannan. “I had a customer call me in early February to ask if the Vidalia onions being sold in the store were really Vidalias. We’re not in season then. It’s important to change signage as seasons change and not to re-use boxes for one type of sweet onion for another type. That only confuses the customer.”

7. CROSS-MERCHANDISE CREATIVELY “The best way to cross-merchandise onions is to market them next to complementary items such as garlic and salad greens,” says Sweet Onion Trading’s Rogers. Include a secondary display of sweet onions next to the packaged salad case, recommends Shuman. “Merchandise tomatoes and avocados next to the sweet onions. Dis- play related products, such as salad toppings, crumbled bacon bits and onion ring batter, next to the sweet onion display.” Think creatively, recommends Curry & Co.’s Curry. “Are you a partner with a particular salad dressing company? Can you create a sweet onion salad? Have sweet onions recently been featured in any of your local food publications or on the Food Network? You can capitalize on the attention they receive. Work with the various sweet onion commissions. They have a lot of great recipes.” The Walla Walla Sweet Onion Mar-

Reader Service # 15 keting Committee, for example, uniquely

60 PRODUCE BUSINESS • APRIL 2010 offers recipes for caramel-dipped sweet “Each region can be celebrated and an ad or This season, too, the VOC is offering kid- onions akin to caramel-dipped apples. promotion run calling attention to the friendly recipes on POS tear-pads as part of Outside the produce department, Rogers newest offering. Use your social networks. a special, season-long promotion that part- adds, “Cross-merchandise sweet onions in Alert your consumers on Twitter that a new ners with Dreamworks Animation using the meat department.” crop of sweet onions has just started.” Shrek to reach a younger demographic of Battle Produce’s Battle adds, “A novel Take a cue from foodservice, says Walla customer. The recipes include Donkey’s idea is to cross-merchandise sweet onions in Walla’s Fry. “A local burger chain starts a Savory Onion Parfait (sour cream with the soup aisle. Consumers really like the countdown to the start of the Walla Walla caramelized onions for fresh vegetable dip- idea of dressing up a canned soup with a season. The same thing can be done at ping), Swampy Joe’s (sloppy Joe with fresh ingredient.” Sweet onion-topped soup retail. All you need is signage and a savvy chopped spinach and Vidalia onions in the is something that can easily be demo-ed in- ad writer to build that awareness and get mix) and Shrek’s Toad Stool Stacks (veg- store, Battle says. “Just sauté the sweet customers excited.” etable loaded meatloaf). onions. Customers will smell it from the Recipe tie-in promotions can also be The promotion, which is running under other side of the store and come over.” effective. Derrell Kelso, Jr., owner and pres- the tag line: ‘What do Ogres and Onions ident of Onions Etc., in Stockton, CA, states, have in common? Layers of originality, 8. PROMOTE SEASONALITY “This season, we’re working on a spring ad Shrek forever after, Vidalia forever sweet,’ YEAR-ROUND with a retailer that cross-merchandises our also includes in-store radio ads that will run Rogers remarks, “The best way to pro- Tuscan sweets with strawberries around a in over 600 supermarkets in 38 markets, an mote sweet onions is twice a month, alter- strawberry, sweet onion and spinach salad online consumer sweepstakes and retail dis- nating between bulk and consumer pack- theme.” The two-week promotion will fea- play contest where the winner will receive ages.” ture the company’s Tuscan Sweets, a 2-lb. a free trip to Universal Studios in Orlando This is just what Lyons does at Bigg’s. bag of Italian Red Onions and Texas 1015s, to see the Shrek 4D attraction. The VOC’s “We’ll either promote sweet onions once a on ad one week and 1-lb. clamshells of Brannan says, “The fourth Shrek movie will month, bag or bulk, or twice a month with a strawberries on ad the next. Both products come out May 21st and that’s the peak of 3-lb. bag one time and bulk the other. This will be cross-merchandised together in our season. It’s the first 3D Shrek, so there gives shoppers two options and two price front of the department display with straw- will be quite a media buzz. All point-of-sale points.” berries rimmed by bags of sweet onions. materials will include the Shrek image, Beyond price, a benefit of regular pro- The salad recipe and a full-color photo of which has an 89 percent awareness rate motions is letting customers know certain the recipe prepared are featured on the with parents of kids ages 6 to 12, the high- sweet onions are available. Curry details, onion bag. est of any animated character.” pb Reader Service # 63

APRIL 2010 • PRODUCE BUSINESS 61 M E R C H A Top Tips For N D I S Merchandising Tomatoes I N Retailers can help sway customers in tomato purchases. G BY CHUCK GREEN R E V ome grocery store shoppers confi- I dently flit from aisle to aisle, E department to department, while E others seemingly are paralyzed by W uncertainty. Whomever the cus- Stomers, several merchandising tactics can help draw their attention and persuade them to purchase one or more of a continu- ally expanding cornucopia of tomato varieties available in the United States marketplace, according to industry experts. Typically, five or six types make up about 80 percent of produce sales, yet retailers should study the dynamics of their produce department to better understand which tomatoes are the “workhorse of the category” and allocate space accordingly, advises Mark Cassius, vice president of sales for Eurofresh About 75 percent of consumers pre- Farms Limited in Willcox, plan tomato purchases and include AZ. Occasionally, though, tomatoes on a regular shipping list. he notes, some stores devote what might be dis- of Agriculture Economic Research Service. proportionate room to spe- Additionally, individuals regularly shop for cific varieties, such as tomatoes weekly or several times a month, Romas, which are less states the Samantha Winters, marketing expensive than more director of the Maitland-based Florida Toma- unique varieties, includ- to Committee (FTC). In fact, about 75 per- ing Heirlooms, clusters cent of consumers preplan tomato purchas- and premiums. This strat- es and include tomatoes on a regular shop- egy might not pay the ping list. That underscores the importance bills, he warns. of the tomato category to the produce Increased floor space dedicated to select should just put it in the middle of the floor, department, which currently contributes tomatoes that sell more aggressively, along like they’ve been marketing apples lately — more than six percent of total produce with competitive pricing, pays off for retail- a whole kiosk dedicated to tomatoes.” department dollars, the committee notes. ers, says Alejandro Canelos, officer at Fresh and processed tomatoes account Nogales, AZ-based Apache Produce Imports for more than $2 billion in annual farm cash STRETCHED ON SPACE LLC. “The variety’s already there; retailers receipts, according to the U.S. Department Logical as it might seem to make way for

62 PRODUCE BUSINESS • APRIL 2010 Reader Service # 41 M certain types of tomatoes in produce depart- E ments, it might not always be that simple as some retailers may be stretched on space The Secret To Selling R within the area, Cassius admits. In that C event, retailers have used secondary dis- Sun-Dried Tomatoes H plays with photos affixed that explain a n addition to the many varieties of fresh to try them at home. So our job is to get product and usage occasions, he points out. tomatoes consumers can choose from recipes into consumers’ hands. We use A Fresh Florida tomatoes work well in sec- Iin the produce department, there’s also neck hangers for this. Plus, we direct N ondary displays that can be placed next to sun-dried tomatoes to think about. Retail- consumers to our Web site and also to complementary items including packaged ers, take note: Just because these aren’t our 1-800 number. There’s recipes for D D salads, onions, herbs and dressings, as long “fresh” tomatoes doesn’t mean they everything from hors d’oeuvres to cen- I as tomatoes aren’t exposed to cool tempera- should be relegated to the grocery aisles. ter-plate dishes.” S tures, adds the committee. Bill Riley, vice president of sales and mar- Mooney reports, “A recipe booklet on In the push by retailers to generate maxi- keting for California Sun Dry Foods, based every jar offers consumers at least five or I mum productivity from their overall stock- in Danville, CA, asserts, “The category does six recipes. They are seasonal, so they N ing selections, Gordon Robertson, vice presi- not compete with fresh tomatoes; it com- change a few times a year. We have dent of sales and marketing for Sun World plements them. They have two completely recipes on the Web site, too, and in a cou- G International LLC, in Bakersfield, CA, notes, different uses. The rule of thumb is that ple of months, we are going to launch our ultimately, nothing translates into sales, not the closer you merchandise sun-dried new site, which will feature even more R to mention brand loyalty, more than offer- tomatoes to fresh tomatoes, the better recipes, as well as a blog. ing high quality products. “If consumers see your sales will be. “ In addition to being a healthful snack, E what they think is a great looking product Mary Mooney, general partner at sun-dried tomatoes are replete with nutri- V and likes it, it makes a big impact.” Chico, CA-based Mooney Farms, agrees, tional benefits. According to Mooney, sun- “The best place to merchandise sun-dried dried tomatoes have 17 times the amount I PROVIDE GUIDANCE tomatoes is always by the fresh toma- of lycopene as a fresh tomato and loads of E Yet, while customers might know quality, toes. Even though they are dried, they anti-oxidants. “Plus, our sun-dried toma- W they can’t be expected to understand differ- still taste like a tomato. It’s just a more toes are packed in olive oil, not canola oil, ent pricing, or how to buy tomatoes, robust flavor. When people think of toma- which is an excellent source of Omega 3,” observes Mark Munger, vice president of toes, they think of all varieties and they she adds. “People want nutritious snack marketing for Andrew & Williamson Sales are all produce-driven.” options that are easy to eat and sun-dried Co. Inc., in San Diego, CA. That’s where While most retailers follow this rule, tomatoes fulfill all these requirements.” retailers can guide them in their shopping others worry about cannibalizing the entire And what great snacking options there selections, he says. “For instance,” elaborates tomato category. Mooney contends there’s are! In addition to the typical sun-dried Munger, “given consumer purchase habits no reason for concern. “If you need a tomatoes packed in olive oil, California Sun and category management, retailers can sliced tomato, you are not going to buy Dry offers consumers a vast array of choices. prompt shoppers by lumping tomatoes into sun-dried tomato packed in olive oil. There “For those watching their waistlines, we have various categories, from the every-day sort are completely different uses for them.” sun-dried tomatoes with no oil, just bagged of low-priced tomato, such as the Roma, to Even though household penetration on their own and ready to eat as a healthy the premiums, such as tomatoes-on-the-vine continues to be low, admits Riley, “Many snack. There’s also a range of related prod- and grape, all the way up to gourmet vari- people experience the flavor of sun-dried ucts, such as sun-dried tomato spread, salsa, eties such as the Heirloom and specialties. tomatoes in a restaurant and then want garlic and pesto.” pb Munger adds that while value-type toma-

toes generally don’t lend themselves well to advertising or promotional initiatives, retailers ought not construe that to mean that Romas, which are particularly popular among customers on “almost every shopping purchase,” shouldn’t be advertised at all. In fact, he encourages retailers to build a prominent display to tap into their popularity. Ultimately, that helps them achieve two things: It routinely drives sales of less expensive varieties of tomatoes while allow- ing retailers to focus advertising on more premium and gourmet tomato items. Furthermore, Munger recommends plac- ing gourmets and premiums in ads to stir attention and generate excitement, and positioning them higher in displays, where they’ll be nestled at an ideal eye level. The Heirloom tomatoes, along with other gourmet and premium varieties, should be aim, of course, is to pique shopper curiosity merchandised at eye-level, to attract customer attention. and compel consumers to consider tomatoes

64 PRODUCE BUSINESS • APRIL 2010 Reader Service # 25 M they might not typically choose. That’s not those who embrace the opportunity to sam- E always easy, since research shows the ple something new. “Consumers are attract- majority of shoppers aren’t all that adven- ed to products that are different,” he asserts. R turous and might confine their willingness “They’ll take it home and try it. If they like “You have various C to pay several dollars a pound for a tomato it, of course, it could mean repeat business for a retailer.” items out around the H to only those with which they’re familiar, explains Munger. When it comes to marketing Heirloom produce department, A Maybe, but Jim DiMenna, president of tomatoes, Peter Kroner, director of business N JEM-D International Partners LP, an expert development of Eli & Ali’s Love Tomatoes, a and within those in the greenhouse industry, based in Leam- Brooklyn, NY-based specialist in organic and D items, you might D ington, Ontario, Canada, notes that retailers upscale produce, recommends including I perpetually stake out new tomatoes, down point-of-sale signage to illustrate an Heir- have little recipe S to the shape, color and size, to accommodate loom tomato’s heritage. “An Heirloom toma- cards for Bruschetta, I or ways for using N peppers and sausage, G which drives consumers to other R E departments and V maintains a presence I at a destination E category. It’s a way W to give consumers ideas.”

— Doug Kling Village Farms

to is a legacy providing the nomenclature of the variety, particularly when you are selling an item many people don’t know,” he says. “Consumers might look at an Heirloom tomato and say it is misshapen or odd-looking, but once they taste it, they will know how good it is and they’ll always come back and buy it, regardless of the price.” “Retailers get too hooked on size,” insists Fried DeSchouwer, managing partner of Greenhouse Produce Co. LLC, headquartered in Vero Beach, FL. “Why are six small tomatoes not as good as four large tomatoes? You go into a retail store today and see all these large sizes of fruit and wonder whether these guys figured out that you throw half of it away.”

GOOD TASTE Meantime, while Munger of Andrew & Williamson observes, “Typical Americans think tomatoes should be red and taste like Thousand Island dressing,” over the last several years, he agrees that the industry has improved in as far as providing new types of

Reader Service # 5 highly flavorful tomatoes. “Over the past 10

66 PRODUCE BUSINESS • APRIL 2010 years, we’ve seen a tremendous increase in tomatoes, built from the floor up. “It really Packaging can bear elements like color new varieties, including value category catches the eye of consumers,” he remarks. breaks, which can be eye catching, and items, such as new and improved Romas enables retailers to convey information that and round tomatoes,” he admits. “We see a ALL IN THE PACKAGING? can help educate consumers, notes Munger. lot of new specialty tomatoes that really Some industry experts believe the idea While DeSchouwer also extols packag- focus on high flavor.” However, Munger says of packaging tomatoes is a better decision ing’s role in preventing shrinkage, he says the industry can do a better job as shippers than others. For example, Stiles says that when items are packaged, some shoppers and retailers, as well as in merchandising, to with little exception, his store sells tomatoes might actually walk away because they feel help communicate what consumers expect loose rather than packaged because, “people that packaged produce conveys “a sense of from tomatoes. like to touch them and look at them whole cheapness, or that something must be lurk- Speaking of displays, a number of retail- before a purchase.” However, he acknowl- ing inside the package,” which retailers are ers lean toward larger ones, which can help edges benefits to packaging, such as its role trying to camouflage. trigger “impulse sales,” a key tool in a slug- in minimizing shrinkage. Either way, packaging only goes so far, gish economy where items like tomatoes

“It’s a matter of building that extra alternate display and cross-merchandising with other items in produce. We want to get items out there where people are going to notice them.”

— Dick Stile Redner’s Markets

might not always make a customer’s shopping list, says Dick Stiles, produce director of Redner’s Markets, a 38-unit chain based in Reading, PA. “You have to wow consumers as soon as they walk in the front door.” More than a “small footprint set off in the corner, retailers need significant positioning with a great tomato offering in their department to help fan the likelihood of an impulse sale,” advises Sun World’s Robert- son. Consumers are making many decisions while they’re in the department, he notes. Displays with a table, spread out, perhaps over 20 square feet, can go a long way in helping retailers tell consumers about their department and communicate that a product, such as a tomato, is a good value item, he adds. Typically, along with demonstrations, Kroner recommends building waterfalls with his company’s high graphic boxes so

that the display looks like a waterfall of Reader Service # 26

APRIL 2010 • PRODUCE BUSINESS 67 M E R C H A N D I S I N G

R Packaged tomatoes not only help minimize shrink, but they also provide versatili- E ty in merchandising in small spaces and optimizing color breaks. V Apache’s Canelos emphasizes. “You can bag others. “To me, with all this fancy packaging, I up an item like a tomato as nice as you you put a good product out there at the right E want, but at the end of day, the grower, the price, it’ll sell itself.” W middle man and the retailer have to work If retailers package tomatoes, Eurofresh’s together to make sure that when it’s on shelf Cassius would opt for an earth-friendly it is something the consumer really wants.” clamshell, especially for some specialty vari- He believes, for the most part, that happens, eties, which people want to know more about. yet says some retailers are better at it than He believes packaging helps retailers more Reader Service # 32 Reader Service # 82 Reader Service # 67

68 PRODUCE BUSINESS • APRIL 2010 effectively convey information including sample tomatoes, such as Heirlooms and items, he contends a number of retailers are recipes, nutrition and the history of a product. clusters, so that they can taste the differ- nervous building up one variety at the ence between them and other varieties. expense of another. DIALING INFORMATION “The customer has to know the value there Furthermore, properly executed taste The more information the better, echoes versus your regular vine-ripe tomato.” He demonstrations are expensive, observes Cas- Marvin Vargas, director of produce at believes that once they experience the dif- sius of Eurofresh. He’d rather send tomatoes Milam’s Markets, a 5-unit chain based in ference, more customers will be convinced to consumers in a kind of sample box, Miami Springs, FL. “People come to a store to make a purchase. where they’d be pre-washed and ready to with some knowledge, but don’t know In a sense, however, taste demonstra- eat. The box could include coupons to gen- everything about where a tomato comes tions also can be particularly helpful, notes erate incremental sales, he notes. “Retailers from or how it tastes.” Armed with even a Greenhouse Produce’s DeSchouwer. For want to get people to try these varieties or brief history, shoppers can at least know the example, as much as retailers want to use them in recipes so they’ll find that there basics, the best tomatoes and the price they emphasize flavor and differentiate between are better tasting ones out there than they’re should be, he notes. Sun World International’s Robertson is also a “big fan of telling the story.” He thinks it’s a real opportunity for a retailer to talk about why a product is uniquely different or special, as well as its various benefits, such as health and potential meal solutions. Advancing that concept, retailers should include a few simple sound bites in signage, like “sweet,” “tangy,” “delicious” and “good as a snack” in signage, Andrew & Williamson’s Munger suggests. “I’m just talk- ing about quick messages that help give consumers an invitation to buy, which I think they’re looking for. I don’t think it takes much.” However, he believes the industry hasn’t done enough of that. “Part of the challenge is that we, as growers/shippers, don’t have a tremendous amount of imagination on how we design our packaging or use it to communicate strong messages.” Still, he points out that retailers have worked hard over the last decade to stream- line and clean up their stores so that they’re not “loud” in terms of conveying their messages. That, in turn, can make consumers more secure about the products they buy, Munger says.

DEMONSTRATION’S THE TICKET It’s one thing for consumers to see how good an item like a tomato looks, but another for them to experience how good it actually tastes, which can be just the ticket for product introductions, declares JEM-D’s DiMenna. “The first thing a customer will say is, ‘I love the way it looks, but what’s it taste like?’” As a consumer, DiMenna notes he’s taken home products that he’s liked the looks of, but not the taste. “The worst thing you can do is disappoint consumers when they take it home.” A retailer can stock and price a tomato, but if customers have no idea how it tastes, they’ll probably just walk away, adds Red- ner’s Stiles. “You have two or three seconds to make that sell. Someone looks at your display, but something has to attract them.”

He asserts it’s important for customers to Reader Service # 45

APRIL 2010 • PRODUCE BUSINESS 69 M W M W G D C N N H R A E R S D C N N H E E G R V A E R S E E V I I I I I I

70 Reader Service #9 Reader Service #30 mozzarella cheese,drivesimpulsepurchases andliftsalesacrosstheboard. Cross-merchandising tomatoeswithusefulingredients,suchasfreshbasiland PRODUCE BUSINESS• APRIL 2010 requested byaretailer. investment inputtingonetogether unless Robertson isnotkeen onmakingthe place, you’ll see,” Stilescomments. can educateyourconsumer, thehighersales information youcanprovide, themore you new ordifferent-looking tomato. “Themore them overcome areluctance to purchase a which includeabriefproduct history to help sumers upto speediswithshelf-talkers, cost together,” hedetails. pling andwe couldmanagesomeofthe there’d beagrape tomato andcheesesam- from thecheesesideofequation,so tunities. “Let’s saywe cangetsomeone gories to create cross-promotional oppor- al would seekpartners from othercate- tions, Robertson ofSunWorld Internation- rather thansingleproduct demonstra- them, headds. more aptto return to thestore andbuy people like whattheytaste, theycouldbe used to.” Theymightcostalittlemore, butif CROSS-MERCHANDISING novosdsiainpit I’ matter a an obviousdestinationpoint. “It’s tions tomatoes justoutsideitsmeataisle, if theywere going to eatout.” notes. “Butthey’re stilllookingfor atreat, as income andmightnotbeeating out,”he sumers are stretched for theirexpendable contends Eurofresh’s Cassius. “A lotofcon- ers create amealsolutionandtriggersale, way to give consumers ideas.” a “It’s destination category,”heexplains. departments andmaintains apresence ata sausage, whichdrives consumers to other Bruschetta, orways for usingpeppers and you mighthave littlerecipe cards for duce department,andwithinthoseitems, “You have various itemsoutaround thepro- products thatinterrelate withoneanother. it convenient for consumers to buymore sayscross-promotion makes lage Farms LP, keting andsalesatEatontown, NJ-basedVil- increase sales.” tool to using thedisplayarea asacommunication he notes. “We have to spendmore time is partofanevolution for uscollectively, creative missed opportunity.Gettingmore beyond theproduce area, whichcanbea As itis, rarely are tomatoes displayed expand howandwhentheyusetomatoes. opportunity to encourage consumers to cross-merchandising, whichhecallsan anothersalesmethod, Munger prefers While heagrees shelf-talkers have their Another way for retailers to keep con- Still, everyone likes to save money.So ned tlsrprshssoeposi- Indeed, Stilesreports hisstore Cross-merchandising alsocanhelpretail- Doug Kling,seniorvicepresident ofmar- Andrew &Williamson’s Meanwhile, eos whichlendscolor. lemons, Included onthedisplayare avocados and situatednext to theclusters. group oftables, known aspremiums, make uphisfirst hydroponic beefsteak tomatoes, otherwise tomato? Vargas reports inhisstore, the admits. Apremium spotfor apremium “It’ the displaywithsomeMozzarella cheese. surrounds theclusters withbasilandfronts he sellstons, daily.Like theHeirloom,he clusters bigsigninfront ofthem.” a coollooking,soyoujustput black. “They’re in shadesofyellow, green, purpleand even ontheirown, vibrant color,” whichare around withsomebasiljustto bring outthe which theyripen,”headvises. “Iputthem than acaseattimedueto therapid rate at gloves andtheymustbedisplayednomore well. “Theyhave to behandledwithkid tomatoes require specialmerchandising as they consistentlybackup,”henotes. matter ofretailers offeringaproduct that trysomething.Ultimately,however, it’s a to chandising doesagoodjobofgettingpeople “Mer- purchase anitemonceortwice. to effective merchandising willpersuade him margin mixfor mostretailers,” hesays. price-fits-all strategy would make theright buying.“Idon’tthinkaone- uct they’re seeavalue intheprod- points andwant to believes consumers seekdifferent price duplicating thatstrategy. tics” probably prevent U.S.retailers from speculates thatthe“priceandmargin poli- house Produce’s DeSchouwer. However, he every tomato youcanbuy,’” saysGreen- which says, ‘Look!Thepriceis$1.49for attaching anaverage priceto alltomatoes, among anumberofretailers inEurope is higher cashierring,”shesays. to work really well for anall-around seem and sandwichsaladcombinations day, shoppers are lookingfor menuideas ness oftheproduce. “At theendof garlic, whichwork to highlightthefresh- catching popofcolor, suchasavocados or items, especiallythosethatofferaneye- tomatoes withothersandwichandsalad merchandisers cross-promote Florida ters saysthecommitteerecommends notice them.” items outthere where peopleare goingto produce,” he explains. “We want to get in and cross-merchandising withotheritems of buildingthatextra alternatedisplay Vargas alsosayshehasahugedisplayof Vargas hasfound thatHeirloom Milam’s Canelossays Apache’s All thataside, Sun World International’s Robertson “Another ideathat’s beensuccessful Because oftheirversatility, FTC’s Win- n fm etslesbyfar,” he oneofmybestsellers s rtetmte-ntevn,and orthetomatoes-on-the-vine, , pb APRIL 2010 •PRODUCE BUSINESS 71

Reader Service #22 Reader Service #36 Reader Service #71 M E R C H A Merchandising Melons N D I S For Maximum Sales I N When melons are plentiful, they move fast. But don’t count out year-round sales. G BY JACQUELINE ROSS LIEBERMAN R E V I ith seasonality a thing E of the past, consumers E expect to see their W favorite melons year- round. “What sells the Wbest is a melon rack, similar to an apple rack,” says Chris Elsie, president of Pura Vida Farms LLC, in Scottsdale, AZ. “There should be a destination point in the produce department for melons.” Certain melons are must-haves. “Throughout the entire year you should have cantaloupes, watermelon and honey- dews,” advises Elsie. When it comes to these three, it is crucial to think, ‘If I’m a retailer I have to have the fruit year-round, because my competition will.’” But for other, lesser known melons, only stores catering to ethnic consumers who regularly use these should worry about carrying them during the winter months. “We think of melons in the sum- Insiders believe cantaloupes, honeydew and watermelons are must-haves year-round. mertime, so we encourage everybody to carry mixed melons during June and July,” ing to season. “I think retailers should carry when excessive rain in parts of Mexico and explains Elsie. “Those really are a seasonal what they feel they can move without blizzards in various parts of North America item that works best in the summer. Dur- waste,” says Brent Harrison, first vice presi- have caused regional shortages for brief ing those months, they sell like hotcakes dent of the Plant City, FL-based National periods of time.” because people are thinking about melons. Watermelon Association and president of Al Even during the low points, melons You’re trying to create excitement, and Harrison Co. Distributors, located in should never disappear from produce mixed melons create that.” Nogales, AZ. “During promotional periods departments entirely. “Since we have a Publix Super Markets Inc., based in Lake- they should carry quite a bit more.” year-round product, we would love to see land, FL, changes the number of varieties it Despite the year-round availability of that space be there all year and would like offers consumers according to the seasons. melons, there are times when supply is to see retailers offering whole melons there “In peak season we offer nine different vari- extremely low. “In the winter months, par- all year,” asserts Harrison, “not just value- eties,” reports Maria Brous, director of ticularly, there may be times when melons added and fresh-cut melons, although these media and community relations. “On a year- are in short supply, due to a combination of products are appealing to consumers when round basis, we offer four varieties. We want weather issues in the growing areas and in prices are higher and smaller pieces are to offer our customers variety and quality parts of the United States,” explains Gordon more affordable.” selection, thus the two different offerings.” Hunt, marketing director for the National Likewise, smaller melons sell better Like the number of varieties, the amount Watermelon Promotion Board, in Orlando, when prices spike. “You might go from a of melons at each store should vary accord- FL. “This winter is a good case in point, big watermelon to a personal melon during

72 PRODUCE BUSINESS • APRIL 2010 See Us At United Booth #1227

Reader Service # 54 M chain makes its own decision based on the E realities of its own operations. Fresh-cut, in “There is no generic ‘should’ when it comes to the general, however, makes up an increasing R percentage of overall melon movement and C percentage of fresh-cut to whole melon sales. Each will probably increase further as year-round sales continue to grow.” H chain makes its own decision based on the “It’s knowing your clientele and knowing A realities of its own operations. Fresh-cut, in what you’re trying to achieve,” Elsie N general, however, makes up an increasing explains, whether that’s a lower price point or more convenience. “It’s all about figuring D percentage of overall melon movement and will out what the perfect mix is for your store.” I probably increase further as year-round sales There are always consumers who prefer S to buy fresh-cut melons to whole. “You don’t continue to grow.” want to miss a customer. There’s no doubt I that you will increase sales by having fresh- N cut,” says Elsie. — Gordon Hunt And while whole melons can be a bar- G G National Watermelon Promotion Board gain in-season, “Fresh-cut, on the other hand, should always be marketed on the R basis of convenience and taste,” notes Hunt of the National Watermelon Promo- E the wintertime because costs go up,” According to Harrison, “It’s a high ratio of tion Board. V reveals Elsie of Pura Vida. “The quality is fresh-cuts to whole melons in the winter Fresh-cuts must be displayed differently. outstanding on these and the price point months. In spring and summer, it falls off “You’ve got to have the fresh-cuts in a cold I might not be as shocking as a big melon in and more whole melons are sold during case,” asserts Elsie. “You can’t have them sit- E the wintertime.” that period.” ting together with whole melons. It just W Retailers must decide what ratio works doesn’t work. There are a lot of studies that FRESH-CUT OR WHOLE? best for them. “There is no generic ‘should’ show putting it on ice degrades it.” When it comes to the ratio of cut mel- when it comes to the percentage of fresh-cut For this reason, Publix displays more ons to whole, price and seasonality matter. to whole melon sales,” says Hunt. “Each whole melons that cut. “Anytime we have Reader Service # 59 Reader Service # 46

74 PRODUCE BUSINESS • APRIL 2010 adds. “You’ve got a lot of fruit on display, so adds Elise. you want to have an ad.” “Price is huge for promoting,” agrees Har- When prices are low, retailers can use rison. “Coming into Spring and Summer that to their advantage. “In these current there are ample supplies. If the price is recessionary times, whole watermelons are right, retailers can move a lot of watermel- the best bargain in the produce section,” ons. I would like to see retailers keep low Hunt of the National Watermelon Promo- prices throughout the Spring and Summer, tion Board points out. “Showing the price on not just holidays. The more they move, the a per-pound basis highlights the value more profits they make.” proposition of watermelon, particularly for The Spring and Summer are also the per- large families.” fect time to highlight locally grown melons. “Last year was a phenomenal year for “The locally grown aspect has been popular watermelon and it’s tied into the economy,” with chain stores,” adds Harrison.

Displaying overwrapped melon halves help boost sales by showing customers the fruit is ripe and ready to eat. cut melons in a display, for food safety reasons they have to be kept at 40 degrees,” explains Brous. Displaying a few cut melons with whole melons can be beneficial. “The one thing that really sells is if you cut a melon, over wrap it and put it on display,” says Pura Vida’s Elsie. “If I see a cut melon in front of me that looks nice, I’m going to buy a whole one, or maybe a half at the very least.”

TIMING IS EVERYTHING “It is crucial to have the items that consumers want to have all the time,” emphasizes Elsie. “But promoting is a different story. There is a time periods — June, July and August — when melons sell the best, so those are the three months when you should be pushing them. The biggest melon displays should be in the summertime. I think people really get excited about the seasonality of the fruit, and that’s when the quality is the best.” Because this is peak season for many produce items, “In the spring and summer, there’s a lot of competition for that space with other commodities,” says Harrison of Al Harrison. Bins are one way to expand the display space without crowding the shelves. Consumers respond well to bins, according to Elsie. “Bins and a promotion give people the feel that it’s a farmer’s market,” he explains. Although watermelons are most often sold this way, “If you can do cantaloupes in bins, they sell like hotcakes.” However, when using bins as a display tool, retailers must be ready to move mel-

ons fast. “Bins take up a lot of space,” Elsie Reader Service # 79

APRIL 2010 • PRODUCE BUSINESS 75 M EVEN MORE SALES To remind consumers of their great taste, E A great display can make melons more demos help sell melons, as do recipes, such appealing. “The size of a watermelon display as fresh watermelon salsa, according to Har- “The three holidays R can fluctuate from a few simple facings of rison. “I would love to see retailers put that lend themselves C whole and cut watermelon at the front of recipe cards out there with their displays. That would be a great way of promoting dif- H the produce section to a massive multi-bin most to displays display out on the sidewalk,” notes Hunt. ferent uses for watermelon,” he maintains. A But displays are just the beginning. For Summer holidays have traditionally been are Memorial Day, N retailers willing to get creative, the possibili- a time to promote melons. “The three holi- Fourth of July ties for marketing opportunities are endless. days that lend themselves most to displays D D For example, the National Watermelon Asso- are Memorial Day, Fourth of July and Labor and Labor Day. I ciation’s Watermelon Queen — the winner Day. During this time, we place large bin During this time, S of a national pageant who represents the displays of seedless watermelons in our association — is available for special events. stores,” says Brous of Publix. In addition, we place large I “Kids especially get a kick out of her,” says displays such as these are used for melons bin displays N Harrison of Al Harrison Co. “People come during August as part of the retailer’s ongo- up and ask her questions.” In addition to a ing At Season’s Peak promotion. of seedless G G national queen, there are also state chapters Retailers can take advantage of other with their own local Watermelon Queen. holidays, as well. Harrison recalls an espe- watermelons in R When it comes to watermelons, “Aside cially memorable sticker used during Hal- our stores.” from large displays, which always work, pro- loween that said, “Save a pumpkin. Carve E duce managers should look for ways to fea- a watermelon.” V ture value and to remind shoppers of the But it is a mistake to promote only on — Maria Brous great taste of watermelon, even if it is not holidays, reminds Hunt. “Produce managers Publix Super Markets Inc. I on their list that day,” says Hunt. Some need to avoid the tendency to focus only on E ideas that he suggests are seed-spitting con- the peak periods and holidays,” he says. W tests, watermelon-eating contests, carving “Luckily, watermelon is a versatile product contests, recipe contests and a watermelon and can be featured and utilized in many promoted with items from different depart- race day with tricked-out watermelons different ways. Watermelon can be comments to fit virtually any time of year and wheeled down a ramp. bined with different products and jointly any function.” pb Reader Service # 80

76 PRODUCE BUSINESS • APRIL 2010 Reader Service # 12 LOS ANGELES MARKET PROFILE Los Angeles Looks Toward The Future Focusing on emerging demographics and serving customers in new and improved ways ensure the LA Market remains at the top of its game.

BY PRISCILLA LLERAS

ith the industry’s growing focus on consuming “Some people will still walk the market,” agrees Alan Pollack, secre- locally grown fruits and vegetables, wholesalers in tary at Coosemans L.A. Inc. “It depends on an individual’s buying pat- the Los Angeles market area are poised at the right terns, which are dictated by the background and the economics of the place at the right time. The Los Angeles market is consumer. For instance, I have some customers who buy like they were packed with high quality fruit and vegetable whole- in their little hometown in Italy and buy what is available according to salers,W which create an all-encompassing market buzz. Whether the the season. We walk the market every day to see what new items are out wholesaler or distributor is physically located on the actual terminal there and even what should we get rid of.” market on Olympic Blvd. or off-site, there is enough movement in ton- Dan Lawton, sales manager at Tavilla Sales Co. of Los Angeles, nage to fill any customer’s orders. reveals, “These days, the market is mostly visited by regional chain buy- The industry as a whole has been challenged, as of late, due to the ers, foodservice buyers and independent Mom & Pop grocery stores.” economic climate, seasonality of products and overall competitiveness. Wes Liefer, director of PuraVida Farms LLC, in Brea, CA, notes, Nevertheless, the Los Angeles Wholesale Produce Market has been able “Our company is a hybrid model and it fits very well in a market like to endure, offering quality and service to its customers. Richard Flam- Los Angeles. We do a combination of different things. Our primary tar- minio, president at Umina Bros. Inc., states, “This business is changing. get audience is the retailers, selling the products we grow on an FOB- We are in a tough market; people are looking for quality and cost savings basis. When it comes to FOB business and our growing deal that serves and at the Los Angeles Wholesale Market, buyers will find good prices, the national chains that buy direct, they send their own trucks to pick receive top quality product and services that reach door-to-door.” up the product. This is a more traditional procurement for the national The produce companies at the market proudly display their produce in chains. However, the Los Angeles market is a whole other ball game; front of their warehouse doors, and some buyers still walk the market look- it’s completely different than any other market in the country. The ing for new products, quality and the freshest fruits and vegetables. Emily majority wants everything delivered and it’s not always full truckloads, Fragoso, marketing manager for Coast Produce Co. Inc., explains, “Having sometimes LTL quantities and we can do that. We are the a facility on the market, in addition to our company headquarters, gives us grower/shipper, producer and distributor and have the capabilities of an opportunity to showcase our products. For example, independent retail- deliveries and consolidation services for our customers.” ers who only have a couple of stores are an enormous growing retail seg- Pollack asserts, “We are the link between the importers and the cus- ment and they can go to the market and find our products there.” tomers, which is a valuable service these days, specifically due to all the

78 PRODUCE BUSINESS • APRIL 2010 LOS ANGELES MARKET PROFILE

Tania Perez, Omar Reynaga. Tom Hall, Tom Rozzana, Jim Krouse, Umina Bros. Inc. Coosemans L.A. Inc. Coast Tropical Coosemans L.A. Inc. Eureka Specialties Inc.

David Weinstein, Laurent Gabrielli, Miles Veda, Jason Yamasaki, Mark Kawaguchi, Heath & Lejeune Inc. Heath & Lejeune Inc. Heath & Lejeune Inc. Heath & Lejeune Inc. Borg Produce Sales Inc. new regulations that we, as an industry, are benefit for the Los Angeles Wholesale Market long shelf-life that they can count on.” subject to.” is the volume of high quality fruits and vegeta- Karen Caplan, president of Frieda’s Inc., Dale Firman, vice president and CFO at bles coming into the market, which assures the agrees, asserting, “Los Angeles has always been Coosemans L.A. Shipping Inc., adds, “The retailers they are receiving fresh product and a hub of product availability, as wholesalers and Reader Service # 65 Reader Service # 48

APRIL 2010 • PRODUCE BUSINESS 79 LOS ANGELES MARKET PROFILE

Frieda Caplan, Ryan Himil, Adam Torosian, Jesse Garcia, Emily Fragosa and Frieda’s Inc. JBJ Distributing Inc./ Borg Produce Sales Inc. Borg Produce Sales Inc. Courtney Kornegay, Veg-Land Inc. Coast Produce Co. Inc.

Richard and Anthony Flamminio, Rick and Nick Lejeune, Jimmy Matiasevich, with his son, Jimmy III, Umina Bros. Inc. Heath & Lejeune Inc. JBJ Distributing Inc./Veg-Land Inc.

distributors in our area have access to fresh it continues to rely on produce grown in its we adhere to COOL requirements for our produce from all over the world. Also, we are a backyard. With mild climates and fertile land, entire chain of products; we’ve implemented it hub of supply from Japan, Korea, China, Tai- California has the ability to flood the market because it is a positive thing.” wan, New Zealand and Australia. Plus, with with locally grown fruits and vegetables that In addition to mainstream and ethnic pro- access to one of the nation’s largest airports — retailers and chefs diligently seek. Nancy Betan- duce items, the demand for organic produce LAX — we can literally ship product to arrive court, director of national sales at Tavilla Sales, has also been increasing over the past few the next day anywhere in the world!” recognizes, “Sourcing year-round products, years. As the awareness of organics and the Jimmy Matiasevich, president of JBJ Dis- direct grower/partner relationships, quality desire to go green have grown in the market- tributing Inc., based in Fullerton, CA, points products and customer service are the key com- place, demand has increased, and produce out, “The diversity of offerings that we can ponents to effectively and efficiently providing companies are trying to meet the need by offer customers creates a one-stop shop. Plus, for our customers.” stocking the best, most attractive organic lines. we are family-owned and operated, so we are Robert Stauffer, executive vice president What’s more, organics are becoming more hands-on. We do everything ourselves; you and general manager at Tavilla Sales, adds, important to the ethnic demographic as well. always have one of the family members here “We try to partner with customers, creating Rick Lejeune, CEO of Heath & Lejeune, doing whatever it takes the get the job done.” a win-win relationship.” affirms, “The consciousness of the organic The value of one-stop shopping has become The market is very specialized in meeting program has really increased in the Hispanic increasingly more important to buyers. David the needs of its diverse consumer base. For and Asian buying world. Everyone really Weinstein, in sales and procurement at Heath instance, the demand on the Hispanic and knows what the organic program is — they see & Lejeune Inc., explains, “As the cost of diesel Asian trade items have continued to increase at it on TV. However, the prices can still be a fuel and shortage of truck drivers increase and the market, as West Coast buyers and retailers barrier, but we believe that we can bridge that regulations on drivers’ working conditions are are hunting down the merchandise their com- gap on a lot of the items.” more and more frequent, transit times grow, munity demands. Coosemans’ Pollack, The Los Angeles Wholesale Market con- making transportation more costly. The days remarks, “We’ve seen significant increases with tains some of the most unique organic varieties when it was economical for an out-of-town Asian products, specifically with the indepen- of produce. “Small to mid-size family farming customer to build a truck making between four dent retailers.” operations that have been around for 20 to 80 to 12 stops are gone. They are not economical- Jesse Garcia, sales manager at Borg Produce years are our backbone,” discloses Weinstein. ly feasible. The role of businesses such as ours Sales LLC, states, “Being direct importers and “They are the ones who grow and produce — to assemble a wide variety of products from offering a good price and excellent supply out our food. They are valuable in so many ways, a wide variety of areas in one place at one time of our facility in Ontario, California shows we and the fact that they are now coming to us to for one truck to pick up all at once and go are ready to do what it takes and go the extra help them prosper and stay in business gives us directly to the destination — becomes more mile to get the business and provide the cus- the opportunity to reciprocate their efforts and more valuable to customers.” tomer with better cold chain distribution.” and make a contribution not only around the Jim Krouse, president of Eureka Specialties market, but to the mainstream group that is SUPPLY AND DEMAND Inc., notes, “We abide by the rules and regula- looking for organic marketers to help them to The Los Angeles Wholesale Market is one tions, which accommodate the clients and pro- continue to prosper.” of the Top 5 markets in the United States, and vide integrity to our commitment. Specfically, Offering new fruits and vegetables to retail-

80 PRODUCE BUSINESS • APRIL 2010 Coosemans Specialty Produce is Our Business

“We’ve Got You Covered”

Coosemans Los Angeles, Inc. Coosemans L.A. Shipping, Inc. Los Angeles Terminal Produce Market 2820 E. 44th Street 1601 E. Olympic Blvd, #200 Vernon, CA 90058 Los Angeles, CA 90021 Tel. (323) 588-1127 Tel. (213) 689-1551 Fax. (323) 588-7723 Fax. (213) 689-1583

• Serving the Greater Los Angeles/San Diego area. • Serving the world. • Established relationships with growers in Belgium, • Unsurpassed shipping quality. Holland, Israel, Mexico and California. • Experienced Air Freight handlers. • Local and Imported Product. • Drop-ship and VIP services. • We source worldwide. • All specialty and commodity items. • Buying daily to deliver the freshest product available. • Culinary and menu consolation. • Knowledgeable and dedicated sales experts. • Consolidation and repack services. • Full procurement of specialty and commodity items. • HACCP and GMP certified facilities.

Providing Specialty and International Produce for more than Twenty-five Years. www.weshipproduce.com

Reader Service # 78 LOS ANGELES MARKET PROFILE

Robert Schueller and Bill Schneider, Jaime Leon, Dan Lawton, Nancy Betancourt and Robert Stauffer, Melissa’s World Variety Produce Inc. Frieda’s Inc. Tavilla Sales Co.

ers and foodservice is at the forefront of every customers’ needs is a growing trend at the L.A. tion. We offer our customers a program of ser- produce company’s mind. Specifically, introduc- market. Many of the produce companies are vices to assist them in selling more produce. ing new produce in the fresh, bulk and the pack- advocates of providing additional client ser- Each program is customized based on what aged formats is one of the growing trends. vices, such as supplying information about new that account is looking for as far as promotions, Robert Schueller, director of public relations at products and partnering with their customers program goals and merchandising needs.” Melissa’s World Variety Produce Inc., states, to develop programs that will increase fruit and Many produce companies see this trend of “The Steamed Six Bean Medley is a brand new vegetable consumption. Quite a few produce becoming more involved with their clients as a item to our value-added line of veggies. The companies are providing these benefits to the tool that makes them more marketable in a other newest items by Melissa’s are the steamed retailer and foodservice industry, believing this highly competitive marketplace. Schueller adds, red kidney bean, black-eyed peas, seedless additional service equips them with the advan- “The service is the education we provide. We do lemons and pomegranate arils, which were intro- tage to sell more produce. a lot of custom marketing for retailer accounts, duced from October, 2009 to January, 2010.” Bill Schneider, director of marketing at customized booklets and educational materials Melissa’s, states, “We are innovators of prod- to share with retail produce managers and asso- EVOLVING INNOVATION ucts and services. We try to find those items ciates in each of the stores. They are able to AND EDUCATION that are unique and different and that place us incorporate those ideas into a new menu or a Building educational programs around their at a point of differentiation from our competi- recipe to offer their consumers in-store.” Reader Service # 56

82 PRODUCE BUSINESS • APRIL 2010 LOS ANGELES MARKET PROFILE

us. That said, there are still many buyers who prefer to work by phone and fax, and that is ok, too.” Hall continues, “The market has been changing, and you are going to see more and more people come and go. I’ve seen more changes with the current economy over the last two years then there probably has been in the last 20. Plus, there are more people looking for opportunity. Ten years ago, larger retailers wanted to go more direct with the shippers and Dale Firman, Bob Pollack and Alan Pollack, growers that they were working with and Coosemans L.A. Inc. bypass the wholesale market entirely. However, in today’s economy, buyers are calling around to ensure they are staying competitive.” One technological advancement is wit- nessed in the latest, state-of-the-art ripening rooms. Hall points out, “Coast Tropical has 52 ripening rooms that offers two different levels of ripening. The rooms are designed to ripen or cool all types of produce and provide the optimum environmental conditions for fruit ripening. Consistency is key. “The attention on con- Left to Right: Brian Murai, Bobby Van Ligten, Jeff Liefer, Debbi Allen, Wes Liefer, Mel Herman and James Murray, Pura Vida Farms LLC sistent, quality products at a fair price and doing the best we can at servicing the cus- Coosemans’ Firman notes, “We assist our tomers to order online. We believe this is a tomer is still the focus,” says Eureka’s Krouse. foodservice companies with menu planning great help to them. We are also developing new “If you do it, and do it right, the people will ideas. We offer suggestions on what products programs as the technology progresses around buy it and they’ll come back to you.” pb to put out monthly and report on the products that are performing well.” Heath & Lejeune’s Weinstein adds, “We offer the customer a wide variety of organic products, but we also encourage the retailers to experiment with other specialty, new, exotic and organic products at prices that are comparable to the conventional items. This way, retailers have the opportunity to introduce a new item and promote the organic program at the same time.” Coast Produce Co.’s Fragoso knows, “Offering turn-key programs for retailers, such as our Coast Organic, Coast Snacking Line, Farmers Select, Coast Caliente and Coast Asia programs, provide a story for consumers. This also allows us to create inspiration for the retailers and their consumers, which is really important to us.” Frieda’s Caplan reveals, “Our entire 48- year history is based on educating consumers, retailers and foodservice distributors on new and unusual produce. Recently, the company launched its 5-Star Program exclusively for retailers who are in partnership with us to increase their retail sales.” While the market has several decades of experience behind it, the way of selling produce is evolving, forcing businesses to meet the changes head-on or get left in the dust. Tom Hall, general manager of sales for Coast Tropi- cal, acknowledges, “We are developing more

internet-based programs, which allow our cus- Reader Service # 72

APRIL 2010 • PRODUCE BUSINESS 83 LOS ANGELES FOODSERVICE PROFILE Spaghettini Grill And Jazz Club Produce takes center stage at this long-time neighborhood gem. Photo courtesy of Spaghettini’s Photo courtesy of Spaghettini’s Executive Chef Victor Avila

his established restaurant in the heart service industry since he was just 15 years old. Chef Debbi Dubbs works with Spaghettini of Seal Beach, CA, relies on fresh pro- His journey has taken him from bus boy to Grill as its direct liaison chef with Melissa’s T duce — locally grown and procured cook and bartender. Following his graduation World Variety Produce Inc, headquartered in from the L.A. Market, whenever possible — to from Indiana University with a degree in busi- Los Angeles, CA. Her primary goal is to get create delicious dishes. California owners, Cary ness, he went right back into the foodservice the positive message out regarding the impor- Hardwick and Laurie Sisneros, have created a field managing corporate restaurants. Shortly tance of new, unique and creative applications chic restaurant that comfortably seats 450 peo- thereafter, at the age of 27, he opened up for fresh produce. Dubbs offers demos in the ple who are looking for a dining experience Spaghettini with his partner Laurie Sisneros in restaurant lobby, taste tests and even cooking overflowing with elegance and charm. June, 1988. classes that feature the newest, freshest in-sea- Hardwick and Sisneros opened Spaghettini son produce and presents innovative and cre- approximately 22 years ago and have established FOCUS AND PHILOSOPHIES ative techniques on how restaurant guests can a dedicated, hardworking team. Sisneros adds, Spaghettini’s Executive Chef, Victor Avila, incorporate produce into their daily life. “Spaghettini’s mission statement is to create a reports, “Spaghettini’s philosophy toward Spaghettini’s business philosophy is as cre- legendary restaurant that enhances the lives of offering fresh produce on the menu is to ative as its menus. The restaurant’s focus is to its guests and employees. We believe that there always source the highest quality produce avail- offer its guests a fresh product. Hardwick is no point in working as hard as we do to sim- able and to use organic whenever possible. explains, “We are always looking for original ply offer an average experience. We hire skilled With produce, we are trying to accomplish produce — asking ourselves, ‘What should we people who truly care about the guests’ experi- making a statement to our guests that we be selling right now? Since we are a single, ence and we give them all of the tools at our dis- understand that a great meal always starts with high-volume restaurant, we have the capability posal to allow them to be successful. From the fresh ingredients. He continues, “My favorite to modify our menu quickly even from lunch smallest heirloom tomato to the ripest jumbo produce item to use is shallots. I believe they to dinner. For instance, if there is a product strawberry, every food item served in our restau- are underrated and yet you can do so many that is only available for a two-week period, we rant is chosen with forethought.” things with them, from sautéing to carameliz- have the capability to add that product to the Hardwick has been working in the food ing and even including them in many sauces.” specials.” In fact, the menu as a whole has an

84 PRODUCE BUSINESS • APRIL 2010 LOS ANGELES FOODSERVICE PROFILE

RELYING ON THEIR SOURCES farm or farmer regarding the breeding of that Spaghettini’s chefs know how important it product, it’s a win-win situation. This is the is to source and maintain high quality fruits type of information we give to our guests and and vegetables. Chef Dubbs enjoys walking they really enjoy hearing it.” pb the terminal markets. “Walking the market gives me a pulse on the freshest produce and seasonal products, as well as receiving insight from Melissa’s regarding their new products,” SPAGHETTINI GRILL AND she says. “Melissa’s sends both Victor — who JAZZ CLUB is responsible for creating all the menus at 3005 OLD RANCH PARKWAY Spaghettini — and I the newest products so SEAL BEACH, CA 90740 that we get the opportunity to experiment 562-596-2199 with them and see how we can best utilize them. That’s the type of relationship we have LUNCH:MONDAY -FRIDAY: with Melissa’s.” 11:00AM TO 2:00PM Chef Debbi Dubbs Describing Spaghettini’s criteria for sourc- DINNER:MONDAY,TUESDAY: ing produce, Chef Dubbs notes, “We like to 5:30PM TO 9:00PM incorporate as much seasonal produce as we WEDNESDAY -SATURDAY accommodating flexibility to highlight whatev- can, specifically from here in California. We 5:30PM TO 10:00PM. er the season has to offer. It changes up to four have such great farms and such great produce SUNDAY: 5:00PM TO 9:00PM times per year, offering diners a diverse and and when you combine that, you get great fla- SMOOTH JAZZ SUNDAY BRUNCH: exceptional food experience that contains the vors. We do use products from other countries 10:00AM TO 3:00PM freshest and most alluring produce. The when they are not in season in California, but restaurant’s love of produce is on display dur- for the best flavor profiles we prefer local, sea- LIVE JAZZ EVERY WEDNESDAY ing its elaborate Smooth Jazz Sunday Brunch, sonal items. THROUGH SUNDAY EVENING when nearly 90 percent of the dishes showcase Hardwick adds, “When we have the flavor fresh produce, which are often incorporated profile that the chef is looking for with a spe- WWW.SPAGHETTINI.COM into creative salads and side dishes. cific product and the story pertaining to the Reader Service # 52 Reader Service # 53

APRIL 2010 • PRODUCE BUSINESS 85 LOS ANGELES RETAIL PROFILE Henry’s Market Produce plays an important role at this Southern California staple.

ince it opened in the 1950s, to five stores in California each week, meeting oped such a loyal customer base.” Henry’s Market has grown consid- with produce department managers and associ- erably, expanding to 32 stores ates to get customer feedback and identify new SOURCE AND SUPPLY strategically located around South- opportunities to further enhance consumers’ Henry’s Market routinely takes advantage of ern California. Andrew McGregor, shopping experience. seasonal, locally grown products from Califor- Sdirector of produce and floral for all loca- Henry’s is so focused on fresh fruits and nia. McGregor reports, “Right now, close to 80 tions, notes, “The Sun Harvest stores were vegetables that the produce department percent of our produce on the shelves is local, acquired by Wild Oats, along with Henry’s in accounts for anywhere from 25 to 30 percent California-grown.” He adds, “With our exten- 1999 and merged with the greater Henry’s of each store. McGregor remarks, “Produce sive history in the Southern California market, Farmers division during the Smart and Final was the foundation of the company more than Henry’s has developed numerous strong rela- purchase. These eight stores are located 50 years ago and continues to be one of the tionships with local, high-quality growers and across Texas — two in Austin, three in San driving forces behind the brand. Henry’s built shippers. For example, we have a very strong Antonio, one in El Paso, one in McAllen and its Southern California reputation by offering local program in San Diego with Carlsbad- one in Corpus Christi.” fresh, high-quality produce at unbelievable val- grown strawberries. The berries are delivered McGregor had been with Wild Oats for 15 ues. We’ve built the business around the ability up to seven days per week directly to each of years prior to its acquisition by Henry’s and to source a broad range of great tasting and our San Diego stores within hours of being since then, has worked at Henry’s for another local items that can be quickly transported picked. The employees and customers know to five years. His 20 years of knowledge and from the field to the sales floor. We frequently expect these high-quality berries for the dura- experience in the retail industry provides the offer customers product that has been harvest- tion of the Southern season.” He continues, sort of understanding and expertise that equips ed within the last 24 to 48hrs. Creating a des- “In addition to this program, we’ve developed Henry’s produce departments with excellence, tination for fresh produce and offering prod- a local program with a couple of Irvine farms loyalty and commitment to its customers. To ucts relevant within each of our communities that are able to provide locally grown berries to ensure top-notch service, McGregor visits four have been one of the ways Henry’s has devel- our Orange County locations during the same

86 PRODUCE BUSINESS • APRIL 2010 LOS ANGELES MARKET PROFILE

plemented each other and hopefully drove impulse sales and basket size.” Henry’s also provides a specialty category that includes 80 to 100 different SKUs con- centrated on higher end produce. McGregor adds, “Our customers prefer variety and quality versus price and value, so we make quality our main driving point. We also have value-added produce selections, which offer diversity in products and quantities.” Henry’s Markets have experienced success within the organic market as well. McGregor reports, “Actually, we have expanded our organics selections. We believe that organics are a priority for Henry’s. The supply is driven by consumer demand and we see potential growth in organics.” pb

HENRY’S MARKETS 1011 NORTH SAN FERNANDO BLVD. BURBANK, CA 91504

Winter/Spring season. It is our goal to support out. “Champagnes from grocery, chunked 949-727-1385 this network of farmers whenever seasonally chocolate from bulk and pound cakes from MONDAY-SUNDAY: possible and to continue building new relation- our bakery department were tied in with fresh 7:00 AM TO 10:00 PM ships with the variety of excellent growers with- strawberries in entryway displays, providing a WWW.HENRYSMARKETS.COM in each of our select markets.” consistent holiday theme with items that com- Clearly, Henry’s places an emphasis on long- standing grower-supplier relationships. McGre- gor remarks, “Relationships with different growers, both domestically and internationally, allow us to provide our customers with high- quality produce at a great value. Our sourcing principle is diverse and specific by store, particularly based on consumers’ needs and community demand. We also see the importance of sourcing imported fruits and vegetables as they add to the variety and assist us in our efforts to meet our customers’ needs.” PRODUCT POSITIONING Creative and purposeful merchandising is a priority at Henry’s. “Maintaining a unique approach with display practices gives our customers the farmer’s market feel and an excellent shopping experience,” explains McGregor. “We are dedicated to managing cross-merchandising carefully to ensure its relevance to the theme and added-value to the display. When not coordinated properly, I’ve found cross-merchandising can be more of a deter- rent to your merchandising and sales strategy than a support. Our different department merchandising teams work together to consistently communicate cross-merchandising ideas and expectations weekly to the store teams and help monitor and support Best Practices during all store visits. One recent example of a coordinated cross-merchandising event was in

support of this past Valentine’s Day,” he points Reader Service # 55

APRIL 2010 • PRODUCE BUSINESS 87 D R I E D Effective Walnut Marketing F R Retailers shouldn’t wait for the holidays to promote U walnuts as a tasty, healthful snack and ingredient. I T

& BY JACQUELINE ROSS LIEBERMAN

N U T opular for baking, snacking and as S a health food, walnuts are a great match for the produce department, according to Stephanie Blackwell, president of Aurora Products, Pbased in Stratford, CT. Compared to other nuts sold here, “Walnuts are pretty high on the scale,” says Blackwell. “Surprisingly, organic walnuts are very popular for us and are one of our 25 best sellers out of 250 items.” Blackwell believes that walnuts are a good fit for produce. “First of all, walnuts are full of nutritional incentives and are accept- ed by the FDA as an aid to reduce cholesterol levels. Secondly, they taste great and are a good snack. Third, they are great for baking and also an excellent cooking ingredient in veggies and stuffings. Fourth, you can use them as a topping on your favorite salad. Most of these ingredients are located in the produce section of stores.”

Like other produce items, walnuts con- Photo courtesy of Faye Clack Communications tribute many beneficial nutrients to the diet, Walnut sales can be increased by giving consumers more information on usage. according to the Folsom-based California Walnut Commission, including “good” fats after the California harvest, most retailers through secondary merchandising. Often and antioxidants. “Walnuts are a great item traditionally ramp up their promotions. times, the shelled walnuts are tied in with to carry, as they are perfect for family gath- Maria Brous, director of media and commu- the holiday lobby display in addition to spe- erings during the holidays and have many nity relations for Publix Super Markets Inc., cial bin displays we send to retail specifical- health benefits, including Omega-3,” located in Lakeland, FL, reports, “We pur- ly for the holidays.” remarks Jeff Ngo, director of marketing for chase only new crop each year from Dia- To prepare retailers, Aurora’s Blackwell San Francisco, CA-based Diamond Foods. mond Nuts, which is the largest supplier of reveals, “During holidays, we offer or prod- “They are the perfect complement to other walnuts in the United States. Shelled wal- uct in shippers and display-ready cartons. items in the produce aisle. They are ideal nuts are part of an ongoing promotional During the rest of the year, we keep them as for the produce department because of their strategy we exercise at Publix, and as of part of our normal plan-o-gram.” However, freshness. They are a natural item straight most recently, we have introduced shelled she points out that walnut consumption is from the tree. In addition, in-shell walnuts walnuts into our line of Publix private label certainly not limited to the winter holiday sell extremely well in the produce depart- snacks.” season. “We sell walnuts in produce year- ment, especially during the holiday season.” Brous adds, “Shelled walnuts are an round. People are always eating them as important ingredient to many holiday snacks, baking with them and using them as ANY TIME OF YEAR recipes. During the months of November toppings for salads,” she says. For most of During the fall and winter months, just and December we expand our offering the year, she recommends dedicating one or

88 PRODUCE BUSINESS • APRIL 2010

D two shelves to walnuts in their various tive display that has a simple message, R forms, which include walnut halves, walnut while highlighting the benefits of walnuts.” pieces and chopped. “I don’t believe it’s a Pricing should depend upon the walnuts I To encourage sales year-round, Virginia themselves, whether they are packaged as E Zimm, president of Mississauga, Ontario- matter of optimum premium products or as commodities. D based Faye Clack Communications Inc., space, it’s a matter “Navel oranges are more expensive than which represents the California Walnut juice oranges,” Aurora’s Blackwell explains. Commission, suggests retailers “build per- of where they are “Walnut halves are more desirable than wal- F manent displays in the produce department featured in the nut pieces, unless you need chopped ones and build satellite displays throughout the for baking.” R R department where they complement other department and “Walnuts should be priced competitively, U U produce items. Create displays that suggest with what other pro- not deeply discounted, which diminishes I a fruit platter would not be complete with- their value, or too high for consumers not to out walnuts. Suggest a salad is not complete duce items. If we consider, but reasonably priced in compari- T nutritionally without walnuts. Suggest son to other nuts,” advises Zimm. “We want steamed vegetables would be a bigger hit know that lettuce is the consumer to buy based on walnut attrib- with the family if crunchy roasted walnuts utes. We want them to believe it is a ‘must- & the No. 1-selling cat- & were added as a topping.” have’ on their shopping list, for their health egory, then perhaps and enjoyment.” N TIPS AND TRICKS we should cross pro- For the best shelf-life, walnuts should be A major component of that strategy is stored in airtight packaging, away from U cross-merchandising. “Cross promotion mote walnuts with foods with strong odors and out of sunlight, T works very well,” asserts Zimm. “For exam- the No. 1 SKU we according to the California Walnut Commis- ple, cross promote walnuts with pears, sion. For this reason, retailers selling wal- S apples and cheese and support that promo- know people buy.” nuts in bulk need to keep a close eye on tion with POS, including recipe cards, enter- turnover and proximity to other foods. “Wal- taining tips and nutrition information. Com- nuts will last for up to nine months if kept panion placement often works to stimulate — Virginia Zimm in a dry, cool environment away from the sales for both products. For example, display Faye Clack sun, but humidity will quickly spoil them,” walnuts with bagged salads as the ‘healthy Communications Inc. warns Blackwell. Most walnuts in the pro- crouton.’” duce department are raw — not roasted — The size of the display is less important which is an advantage because roasted nuts than what the walnuts are displayed with, have a shorter shelf life, she details. according to Zimm. “I don’t believe it’s a Signage should be simple, clear and uni- For storage up to six months, the Com- matter of optimum space, it’s a matter of form, according to Diamond’s Ngo. “With mission recommends refrigerating in air- where they are featured in the department limited space and a constant rotation of the tight packaging at 32 to 41˚F 65 percent rela- and with what other produce items. If we freshest products, retailers are helping con- tive humidity. For storage longer than six know that lettuce is the No. 1-selling catego- sumers buy with their senses. Consumers months, they recommend keeping them in ry, then perhaps we should cross promote are looking for great-looking, fresh products the freezer at 0˚F. “It would certainly make walnuts with the No. 1 SKU we know people at a good price. The Diamond Walnut Bin for a better eating experience if produce buy,” she explains and Canopy is a good example of an attrac- staff told the consumer walnuts should be stored in the refrigerator if they are not being consumed immediately,” notes Zimm of Faye Clack. “But that messaging could be presented at display level. Any information you can offer the consumer to enhance the eating experience is a smart move whether it’s a produce clerk relaying the information or with POS.” This information should be relayed to staff, as well. “Retailers need to be educated, too,” reminds Zimm. “Best care, handling and storage and merchandising practices will be rewarded by repeat sales,” says Zimm. “Walnuts should be kept in the cooler prior to displaying them in the department. Perhaps to convey this messaging further, walnuts should be displayed on the refrigerated counters/display decks.” Most importantly, Zimm says, “It’s all about educating the consumer. Tell them what they need to know to create the opti- Aurora sells walnuts year-round. mum eating experience.” pb

90 PRODUCE BUSINESS • APRIL 2010 FLORAL WATCH TRANSITIONS ANNOUNCEMENT NEW PRODUCTS

ROCKET FARMS,SALINAS, CA ONTARIO GREENHOUSE DIRECTORY & INSTANT FLORAL GIFT Clint Bishop is the newest sales team mem- BUYER’S GUIDE AVAILABLE John Henry Co., Lansing, MI, introduces a ber at the second largest greenhouse in Niagra Economic Development Corporation, water-resistant paper pot container that California and seventh largest in the country. Thorold, Ontario, Canada, has published the enhances plants and arrangements making He is involved with key accounts sales, new 2010 Ontario Greenhouse Growers’ Directory them instant gifts. Available in 4- and 6-inch product development and enhancing the & Buyer’s Guide with a distribution of 7,000 sizes and 14 inventory design choices, the company's marketing for its USDA-certified copies. This directory is industry specific and Envi Cachepot includes the coordinating gift organic culinary herb and vegetable line. available to buyers, suppliers, government tag. Packed 24-per-case, the easy-to-store con- Bishop's extensive nursery experience will be agencies, trade and industry associations tainers arrive flat or formed. The inside pot tapped as he also assists with sales strategies who are interested in sourcing Ontario lock secures the plant. Made in the USA of for poinsettias, orchids, calla lilies and mums. greenhouse products and supplies. poly coated recyclable stock with a UV coat- ing. Reader Service No. 336 Reader Service No. 338

PASSION GROWERS INC., DORAL,FL KENYAN ROSES SOLD IN THE U.S. SAY IT WITH ASONG Ben Pauley has joined the premium rose Riverdale Blooms Inc., Maitland, FL Galleria Farms, Miami, FL, introduces provider and importer and is working with recently opened its U.S. sales and marketing Singing Flowers — bouquets featuring a sales and marketing teams to increase value office in Central Florida. Originating in 2005, sound device pick that delivers more than to the company's customers. Pauley's experi- the family-owned and managed business 200 plays of a 20 to 30 second segment of a ence in the floral industry includes operating started growing greenhouse cut roses for song appropriate for the occasion. Sound retail floral shops, managing large distribu- export from Thika, Kenya, East Africa. The device picks for Mother’s Day, Happy tion and procurement operations and creat- company is certified by MPS-ECAS and has Birthday, Halloween, Christmas and ing merchandising and marketing plans for been awarded an MPS-A label, demonstrat- Valentine’s Day are now available. Flowers large national companies. Pauley’s floral ing its vision to grow roses sustainably and are shipped in a colorful display-ready box career began with the Kroger Company more with minimal impact on the environment. and colorful in-store POP material is offered than 30 years ago as a store manager and to retailers. later as a produce and floral specialist. Reader Service No. 337 Reader Service No. 339

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

APRIL 2010 • PRODUCE BUSINESS 91 F L O R A L Selling Licensed Floral Products & Cartoon celebrities have sold carrots, Clementines and cherries in produce departments and bakery profits from all those character-laden cakes. What F does it take for floral departments to benefit from selling licensed products? O L BY JON VANZILE I A G pongeBob SquarePants is no percent royalty rate, stranger to the produce depart- which placed the deal in E ment. Sesame Street’s Elmo has the mid-range of the been seen in supermarkets selling usual 2 to 10 percent M sweet cherries, and soon, some royalty typically charged Sproduce departments will feature the movie to licensees. “Our inten- A A character, Shrek, promoting the sales of tion was to create a win- R Vidalia onions. What about the floral depart- win and get kids inter- K ment? What should retailers evaluate to ested in fresh floral,” E determine if offering licensed floral prod- Levin says. The resulting ucts is a valid draw to increase sales? products included fresh T Licensing floral products seems to be the flowers wrapped in a I smart cousin to branding: Retailers capital- sleeve decorated with

N ize on a well-known, existing trademark or the character’s likeness, Photo courtesy of Dos Gringos name to help attract new buyers and stimu- plus an activity book and Matching the right product to the right market is key. G late sales. But in interviews with growers an invitation to collect Dora the Explorer licensed flowers were a hit in the and distributors who have tried to license all six of the products. As Southwest, thanks to a large Hispanic population. floral products, the reality is somewhat dif- Levin says, “The kids get ferent. It turns out licensing is more expen- something, and Mom gets something, too.” offer products emblazoned with that organi- sive, more difficult than and perhaps not as While the arrangement was “good,” Levin zation’s logo. A portion of the proceeds of effective as they had originally hoped. Yet, also calls it a learning experience, and each sale is contributed to that organization. that’s still no reason to give up. Under the admits there was a steep learning curve. Cause marketing can be highly effective at right circumstances, supporters believe First, there are geographical preferences for moving products — think Lance Arm- licensed floral products can still increase kids’ cartoon characters, just as there are for strong’s Live Strong bracelets — but there sales and profits. The trick is determining fruits and vegetables. For example, Dora the are several complicating factors involved to those circumstances. Explorer did much better in the Southwest, have a truly successful campaign. where there’s a large Spanish-speaking pop- Scott Hill, vice president of sales and THE LICENSING CHALLENGE ulation, than in the Midwest, where there marketing for The USA Bouquet Co., in Licensing has a fairly well established are fewer Hispanics. But the real challenge Miami, FL, has extensive experience with background in produce, where fruit and veg- lay in the market. “You have to match the cause marketing in floral products. In addi- etables bearing cartoon characters have been right product to the right market,” Levin tion to offering bouquets for breast cancer enticing kids and their mothers for years. explains. “I’d do it again, but I’d do it differ- awareness, his company has partnered with Based on this, it seems as if it would translate ently. I would go after the Moms, the prima- Go Red for Women, the Red Dress campaign well to the floral department. There is a key ry customer, instead of trying to create a of the American Heart Association. USA difference, however: the customer. whole new market with the kids. I’ve seen it Bouquet also offers the soon-to-be-trade- At Dos Gringos — A California Flower work better in produce, with SpongeBob car- marked Flowers of Hope program, which Company, based in Vista, CA, president rots and things like that.” generates relief funds for assistance after Jason Levin launched an ambitious project disasters such as the earthquake in Haiti. to license popular kids’ Nickelodeon charac- CAUSE MARKETING: The company plans to make the Flowers of ters including Dora the Explorer and LICENSING WITH Hope program available for retailers that SpongeBob SquarePants. Dos Gringos A PURPOSE want to offer customers meaningful ways to worked out a three-year licensing deal for Cause marketing is closely related to legitimately contribute toward disaster relief national rights, plus a possible extension. licensed product sales. Cause marketing funds or other national and regional causes. American media conglomerate, Viacom, involves partnering with major charitable The first rule of cause marketing seems Nickelodeon’s parent company, received a 5 organizations such as Save the Children to counterintuitive: It is not designed to

92 PRODUCE BUSINESS • APRIL 2010 Beyond Balloons ne area where licensing does work extremely well in floral is the bal- O loon business. Foil balloons fes- tooned with cartoon characters are a mainstay in floral departments across the country, and many of them are distributed by burton & BURTON, in Bogart, GA. These balloons, which also feature Nickelodeon cartoon characters, find themselves at millions of birthday parties Photo courtesy of burton & Burton every year. According to Steve Rose, marketing loons, best-selling licensed Garfield prod- Photo courtesy of The USA Bouquet Co. coordinator for burton & BURTON, ucts include planters, cookie jars and licensed balloons are an excellent profit especially mugs. Rose explains, “All of percentage of donated dollars that go toward source for produce departments. “The these make perfect sense for the grocery administrative costs and those that go retailers pay 89-cents for a non-licensed floral department as they make great gifts toward the actual cause. Groups such as foil balloon, and our MSRP is $2.99,” he as well as impulse purchases, and appeal Charity Navigator and CharityWatch.org use details. “Licensed balloons wholesale for to a wide range of age groups. Those of sophisticated metrics to rate charities based about $1.50 each, depending on the char- us who grew up on Garfield are now at on their administrative expenses and long- acter, but can retail for as much as $4.99 the age that we represent a huge poten- term viability. “One of the things we look for each. It’s low labor. It doesn’t take up tial market, whether we are buying for in a charity is that we don’t want a 40 per- much space. All you do is inflate it and ourselves or our children.” cent administration fee,” Hill explains. “We tie a ribbon to it.” When purchasing licensed products, want every dollar possible to go toward char- There is, however, a science to maxi- retailers obviously consider regional itable work.” mizing sales of balloons. Floral buyers preferences consumers may have, espe- Finally, there is the charity itself. Hill need to stay current with pop culture, as cially where sports teams are con- says charities typically agree to cause mar- well as geographic preferences, so they cerned. For example, three major Flori- keting because it can be a good way for can keep ahead of the curve. “The secret da cities — Jacksonville, Tampa and them to raise money and awareness, but for stores is to anticipate the demand and Miami — have NFL football teams. Rose with larger, more established charities, there be prepared for it,” shares Rose. “Knowing says the majority of sports balloons are are often extreme caveats. Meeting the qual- which movie releases are coming out is sold during major sporting events such ifications to become a partner can be tough. very important. Obviously, kids are the as the Super Bowl and World Series. “Some of the larger charities have minimum biggest target audience for licensed char- Savvy retailers who study their demo- donation amounts you have to meet to use acters. But as we all know, kids have graphics and know their customers offer their logo and become partners,” Hill short attention spans, and what is red-hot a year-round, satisfying mix of licensed explains. “Often times, these minimum con- one day may not be two months later. sports goods in the floral department. tributions make it difficult to work with cer- Retailers should be up to speed on what Floral retailers looking to boost the tain organizations.” are the latest in kids’ TV shows, movies offering of licensed products might con- Overall, Hill predicts that cause market- and even video games. By doing a little sider more upscale items and collectibles. ing in the floral department has the poten- homework, retailers can be prepared “We have the license for the Biltmore Col- tial to be a powerful tool in bringing in new when the wave of demand comes for the lection, which includes vases, plates and consumers to the floral category. “We have next big thing.” tea sets that are reproductions of the dis- supported cause marketing programs for Looking to the past is also meaningful. pay pieces at the Biltmore House in three years now and have seen very positive Garfield the cat is a major license for bur- Asheville, NC,” reveals Rose. He adds the results, but also believe there is huge poten- ton & BURTON, and last year, the compa- demand for the Biltmore items is nation- tial for growth.” pb ny had a strong boost when Garfield wide, but is especially strong in the turned 30. In addition to Garfield bal- Southeast. pb increase margins on licensed products. Cus- ease is the No. 1 killer of American tomers don’t pay a premium for products, women.) And as Hill says, “Women are the for example, associated with the Go No. 1 consumers of flowers.” DO YOU HAVE SOMETHING TO SAY? Red/Red Dress campaign. “We’re looking at This is, however, only part of the pic- Tell us of your good or bad experiences with selling how we bring new customers into the floral ture. First, large supermarket chains typi- licensed floral products. department,” Hill says. “Cause marketing cally have favorite charities and causes Email your comments to drives revenue on promotions and incre- they already support, so floral directors [email protected] mental sales.” This means carefully choos- might be challenged in presenting compet- Your comments are kept confidential ing the causes. USA Bouquet chose heart ing charities to management. There is also and will not be shared in PRODUCE BUSINESS disease and breast cancer because both are the issue of the charity itself. In recent without your permission. of primary concern to women. (Heart dis- years, more attention has been paid to the

APRIL 2010 • PRODUCE BUSINESS 93 RETAIL By Dave Diver PERSPECTIVE Three Cs Of Business

ecently, a friend was involved in a lawsuit against a identified for top quality, low price, service, low operational cost or municipality, and all the evidence available was admitted- something else? Whatever it is, all of the synergies should be ly liable, showing the municipality was legally responsi- focused upon achieving the goal. ble. The question remaining was determining the size of These decisions cannot be made in a vacuum, without consider- the settlement. The attorney, an experienced litigator rep- ing reactions by both consumers and competitors. The most suc- Rresenting the plaintiff, believed this would be an easy case. Howev- cessful organizations know their competitors and consumers as well er, the litigator, with all of his argumentative skills, failed to identify as they know themselves. the three Cs common to nearly every business activity: Know your What will the reaction be to price changes, marketing direction, company, know the competition and know your customer. service levels or the like? At times, depending on the relative com- In the legal environment, knowing the company meant a competitive position, price changes are made to send a message to the plete understanding of how decisions were cur- competitor, especially in a very competitive rently being reached for similar-type issues by marketplace. Is the message one of we can go the legal community. Settling governmental as low or lower than you can, or is there a high- claims had taken on a different process than Decisions cannot er price initiation to determine if the competi- those in the private sector. Now the initial step be made in a tor is interested in raising retails? in litigation has become mediation, rather than Whenever there is an unusual occurrence of a jury trial. As the client and the lawyer were vacuum, without external circumstances, such as the current about to find out, a negligible number of such considering economic upheaval, then an organization’s claims were being awarded to plaintiffs in jury knowledge of competitors’ and consumers’ trials were becoming expensive, and then, a reactions by anticipated reactions pays dividends. fifty-fifty possibility — only at best — of net both consumers Sometimes, a unique approach can be gain greater than from a mediated settlement. and competitors. developed in a challenging market, which gen- The litigator had equally failed to recognize erates additional consumer interest, while at the position of the competition, the municipali- The most the same time present a challenge for competi- ty, their recent history settling these types of successful tors to counteract. In the years following the claims, how well they understood the issues great cranberry cancer scare, back in the 1950s, and the strategies and tactics they would most organizations producers were selling at extremely low prices, likely employ. In representing the plaintiff, i.e. know their attempting to get consumers who formerly the consumer, the litigator had relied on infor- competitors and were large purchasers of the fresh product for mation from the lawyer representing the client Thanksgiving celebrations. Fresh cranberries prior to the actual mediation of the case, over- consumers as well were as price competitive at retail as were looking some information provided during the as they know turkeys, with sales many times larger during discovery process and the time sequence of the that season than they are today. supplied information. themselves. A major question was how much, if any, The bottom line is that the competition was was one prepared to lose. During those years, able to minimize the size of the settlement to a major marketing tool was giving customers little more than actual expenses for medical costs and legal expens- not only trading stamps based on total purchases, but also es — only a small fraction of the amount initially requested by the coupons offering extra stamps with the purchase of specified litigator in the introductory elaborate presentation. Had the three items. At the time, a hundred stamps cost approximately the same Cs been observed, needless time, effort and expense for all parties as a pound of cranberries. Instead of offering stamps with the pur- could have been eliminated while achieving a similar outcome. chase of a specified amount of fresh produce, the coupon read In business, failing to properly recognize any of the Cs can be FREE cranberries when the customer purchased three dollars of not only expensive, but disastrous to the organization. After all, fresh fruit and vegetables. “Free” was the magic word; competition most business activities parallel a war, and knowing their competi- did not counteract and both produce sales and total store sales set tors as well as they know themselves is a priority. However, the records for the period. place to begin is understanding one’s own organization whether it is Since then, trading stamps have nearly disappeared, but buy- a producer, wholesaler, retailer or service organization. What is the one-get-one-free has evolved into a major marketing replacement strategy of the company for achieving its goals and what tactics are for a number of chains. Observing the three Cs coupled with con- available for achieving those ends? Does the company want to be tinuous innovation are cornerstones of successful marketing. pb

94 PRODUCE BUSINESS • APRIL 2010 Reader Service # 11 EUROPEAN By Natalie Berg, research director of Planet Retail, a leading provider of global retailing MARKET information based in London, England Online Grocery Purchasing Works Across The Pond. Is It Feasible Stateside?

magine a grocery store that remembered your past purchases and American consumers would also benefit from an Instant Order provided you with personalized recommendations. Now imagine service such as Ocado’s, which automatically compiles a basket of that grocery store as a Web site that didn’t charge delivery fees, goods based on a shopper’s order history. The online grocer also color-coded your shopping bags by category and allowed you to makes the delivery process straightforward and convenient, sending order your groceries from anywhere in the world — on or offline. text messages to customers with delivery information, including the IIt’s this level of convenience that has enabled online shopping to name of the driver. thrive in the UK grocery market. Unlike in the United States, virtually In the ultimate move toward convenience, many UK grocers are all of the major UK supermarket operators provide a full e-commerce now launching mobile Web sites for shoppers on the move. Ocado on offering, with many retailers now expanding their sites to include gen- the Go offers 18,000 SKUs and, unlike many iPhone apps, shoppers do eral merchandise and services, as well as launching mobile platforms. not even need to be online to place an order. Mobile shopping on the Despite many similarities between the UK and the United States in whole is gaining momentum due to a combination of more main- terms of consumer behavior and demographics, the online grocery stream consumers using smartphones as well as retailers creating channel has failed to have the same impact on American soil. So why mobile-specific shopping platforms. By 2015, goods and services hasn’t online grocery retail taken off in the United States? bought via mobile phones are expected to account for 8 percent of e- Firstly, it’s important to note that growth in the U.S. online grocery commerce sales. Mobile shopping in the United States is still in its channel has been seriously hindered by market conditions. The UK is infancy, although there are some online grocers, such as FreshDirect. a small country that is geographically the same size as Oregon. Howev- er, with a dense population of 60 million, e-commerce delivery is an CONFRONTING ONLINE OBSTACLES efficient and viable option for retailers. Similarly, there is a high degree One of the biggest obstacles for an online grocer is to convey quali- of retail concentration in the UK, which has resulted in extremely ty in perishables. It is often the major category that shoppers hesitate strong branded retailers; the Top 5 grocers account for 55 percent of the to buy online due to the inability to see, touch and smell the produce. total market, compared to just 29 percent in the United States. Also in Grocers in the UK are working to address this by offering vegetable America, with the exception of urban areas where online retailing boxes that come in bulk, directly from the farm. Once again, innova- works quite well, the combination of a sparse population, high levels of tor Ocado created a new first for the industry last year when it car ownership and inexpensive fuel — when compared to the UK — launched use-by date guarantees. Unlike most online grocers in the has thwarted the development of the online grocery sector. UK, which pick items from the store, Ocado’s deliveries come from a As a result of these inefficiencies and market conditions, American temperature-controlled warehouse. The retailer has used that to its supermarkets have yet to fully embrace the channel. Convenience is advantage by printing use-by dates online and on customer receipts the premise of online grocery shopping, but what is convenient about for each product ordered. four-hour delivery windows, high delivery fees and a $50 minimum purchase? Due to a lack of scale, it is clear that these fees and mini- DELIVERING VALUE mum orders are essential to at least partially cover the retailer’s costs. The recession has done little to dent the success of Britain’s online However, online grocery will never gain momentum in the United grocers. In fact, most benefited from the economic downturn as shop- States until retailers are willing to invest more in making the experi- pers turned to the Internet for price transparency and the ability to ence one that is convenient and enticing for shoppers. avoid impulse purchases that may have otherwise occurred in-store. Pricing became more competitive online and value-focused private CONVENIENCE COUNTS label lines were launched. Waitrose, one of the most premium grocers, Quite a lot can be learned from the British system, perhaps, most began price-matching Tesco online. Meanwhile, Tesco launched importantly, that online grocers can provide a true point of differenti- Cheaper Alternatives; when shoppers select a branded item, a cheap- ation through convenience. One of the most recent innovations in this er alternative — private label in most cases — is also displayed to offer field has been the launch of online recipes that link all of the ingredi- shoppers more value and choice. ents to a shopper’s basket with just one click. Online grocer, Ocado, What’s more, delivery fees may soon be abolished. Waitrose became was the first to debut the service and market leader, Tesco recently fol- the first supermarket in the UK to do so last year. It’s no surprise that lowed suit with the launch of Tesco Real Food in February. This like-for-like sales at Waitrose.com were up 39 percent in 2009. unprecedented level of convenience will drive repeat trips, and ulti- The increased adoption of smartphones by mainstream consumers mately, differentiate the online channel from brick-and-mortar stores. will put pressure on retailers to improve their online/mobile offering. At the same time, it allows retailers greater control over the purchas- Although grocery e-commerce may never reach the same penetration ing decision — it’s no coincidence that six of the eight ingredients as in the UK, there will certainly be demand from a consumer’s per- needed for Ocado’s Asparagus Risotto are private label items. spective for a fast, convenient and value-led shopping experience. pb

96 PRODUCE BUSINESS • APRIL 2010 TURN YOUR MARKETING INTO AN AWARDING EXPERIENCE

Right now, and on through June 4, 2010, we’re taking entries for the 22nd Annual Marketing Excellence Awards Program, presented by PRODUCE BUSINESS. The awards recognize excellence in marketing in each of five categories: retailers, restaurants, wholesalers, shippers and commodity organizations. Print, broadcast and other media are eligible to win.

To participate, send us the following:

1. Your name, company, address and phone.

2. Type of business.

3. Names and dates of promotion (must have taken place between June 1, 2009 and June 1, 2010).

4. Promotion objectives.

5. Description of promotion. 2009 MARKETING EXCELLENCE AWARD WINNERS 6. Promotion results (sales or traffic increases, media attention). What made this program a success? • California Giant Berry Farms • California Table Grape Commission 7. All support materials used in the promotion – such • Chilean Avocado Importers Association as POP, ads, posters, TV commercials. • Chiquita/Fresh Express • Coast Produce Co. Inc. High-resolution photos to illustrate the promotion are encouraged. (Please do not send any produce) • Eurofresh Farms • Giumarra Bros. Fruit Co. Inc. • Idaho Potato Commission • National Mango Board • New York Apple Association SEND ENTRIES TO: • Network For A Healthy California • Ontario Apple Growers PRODUCE BUSINESS MARKETING • Produce For Kids EXCELLENCE AWARDS • Riveridge Produce Marketing Inc. P.O. Box 810425 • Boca Raton, FL 33481-0425 • Sambrailo Packaging • Tanimura & Antle Inc. Deadline for entries is June 4, 2010 • University of Massachusetts For additional information, call: 561-994-1118, Ext. 101 he more things change, the more they stay the same.” This age-old adage “ couldn’t be more fitting a description for the produce industry, and this classic photo from 1970 brings the point home. Taken at the annual dinner for the officers of the New York Blast Tbranch of the United Fresh Fruit & Veg- etable Association, pictured from left to right are Stephen from the D’Arrigo, Nicholas Armata, Al Nagelberg, Chet Levatino, Arthur Slavin and Lew Sherman. D’Arrigo, Armata, Nagelberg and Levatino were mer- Past chants on the Hunts Points Market, in the Bronx, NY. D’Arrigo passed on his business, D’Arrigo Bros. Co. of New York. Inc., to his sons, Paul, Michael and Matthew, while Armata did the same. Sons, Chris and Paul Arma- ta, now run the show at E. Armata Inc. While Nagelberg simply closed up shop, Chet Levatino joined the team at D’Arrigo Bros as a vice president for some time after closing his own business. Although Slavin and Sherman did not own wholesale businesses on the market, they were instrumental to the inner workings of the market in their own way. Slavin served as an attorney for both the Hunts Point Market and the New York chapter of the United Fresh Fruit & Vegetable Association, for which Sherman was the coordinator and chairman. When that dissolved, he ran the New York Produce Trade Association, which, along with the Hunts Point Market Co-op, ensures the terminal market runs smoothly. PRODUCE BUSINESS thanks Matthew D’Arrigo of D’Arrigo Bros. Co. of New York Inc. for sharing this photo with us. The Blast from the Past is a regular feature of PRODUCE BUSINESS. We welcome submissions of your old photos, labels or advertisements along with suggested captions. Please send materials to: Editor, PRODUCE B USINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail [email protected]

INFORMATION Receive supplier information fast using the Produce Business Information Showcase. Here’s How: 1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the Reader SHOWCASE Service numbers that correspond to the ad and the information showcase. 2) Contact the advertiser directly via the Web site, e-mail, phone or fax listed in the ad. APRIL 2010 COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX

A&A Organic Marketing, Inc...... 28...... 75 ...... 831-768-0300 ...... 831-685-0302 Idaho Potato Commission ...... 25...... 34 ...... 208-334-2350 ...... 208-334-2274 Abbott & Cobb ...... 75...... 79 ...... 800-345-SEED ...... 215-245-9043 Index Fresh of California ...... 35...... 6 ...... 909-877-1577 ...... 909-877-0495 Abbott & Cobb ...... 76 ...... 80 ...... 800-345-SEED ...... 215-245-9043 J J Jardina Company, Inc...... 45 ...... 19 ...... 404-366-6868 ...... 404-366-1386 Agrexco USA, Ltd...... 24 ...... 17 ...... 718-481-8700 ...... 718-481-8710 Jem D International ...... 66 ...... 5 ...... 519-733-3663 ...... 519-733-9970 Albert’s Organics ...... 29 ...... 29 ...... 678-429-9497 ...... 610-444-0316 Kerian Machines, Inc...... 68...... 67 ...... 800-551-5188 ...... 701-352-3776 Maurice A. Auerbach, Inc...... 27...... 28 ...... 888-AUERPAK ...... 201-807-9596 Kern Ridge Growers, LLC...... 28 ...... 20 ...... 661-854-3156 ...... 661-854-2832 Blue Book Services...... 95...... 11 ...... 630-668-3500 ...... 630-668-0303 Lakeside Organic Gardens ...... 29 ...... 58 ...... 831-761-8797 ...... 831-728-1104 California Sun Dry Foods ...... 65 ...... 25 ...... 800-995-7753 ...... 925-743-9936 Mann Packing Company, Inc...... 9 ...... 4 ...... 800-884-6266 ...... 831-422-5171 Canadian Produce Marketing Association ...... 26...... 3 ...... 613-226-4187 ...... 613-226-2984 Mastronardi Produce, Ltd...... 63...... 41 ...... 519-326-1491 ...... 519-326-8799 Capital City Fruit Co., Inc...... 68 ...... 32 ...... 515-981-5111 ...... 515-981-4564 Melissa’s/World Variety Produce, Inc...... 85 ...... 52 ...... 800-468-7111 ...... 323-588-7841 Castle Rock Vineyards ...... 50 ...... 51 ...... 661-721-8717 ...... 661-721-0419 Mission Produce, Inc...... 36 ...... 1 ...... 888-549-3420 ...... 805-981-3660 Chep USA Inc...... 5 ...... 76 ...... 800.CHEP. USA ...... 407-422-4614 MIXTEC Group ...... 14 ...... 35 ...... 626-440-7077 ...... 626-440-1557 Christopher Ranch ...... 28 ...... 2 ...... 408-847-1100 ...... 408-847-0581 Monte Package Company ...... INSERT ...... 800-653-2807 ...... 616-849-0185 Ciruli Brothers ...... 21 ...... 60 ...... 520-281-9696 ...... 520-281-1473 Mooney Farms ...... 67 ...... 26 ...... 530-899-2661 ...... 530-899-7746 Concord Foods...... 33 ...... 43 ...... 508-580-1700 ...... 508-584-9425 Morada Produce Company ...... 37 ...... 57 ...... 209-546-1816 ...... 209-546-1822 Coosemans L.A...... 81...... 78 ...... 213-689-1551 ...... 213-689-1583 Nickey Gregory Company, LLC...... 43...... 47 ...... 404-366-7410 ...... 404-363-1169 Country Sweet Produce, Inc...... 30 ...... 73 ...... 661-858-1075 ...... 661-858-0306 Pandol Brothers, Inc...... 70 ...... 9 ...... 661-725-3145 ...... 661-725-4741 Curry & Company ...... 55...... 18 ...... 800-929-1073 ...... 503-393-6085 Peri & Sons Farms ...... 58...... 14 ...... 775-463-4444 ...... 775-463-4028 DeBruyn Produce Co...... 56 ...... 61 ...... 800-733-9177 ...... 616-772-4242 Plantation Sweets...... 59 ...... 68 ...... 800-541-2272 ...... 912-684-4545 Del Monte Fresh Produce...... 100...... 40 ...... 800-950-3683 ...... 305-520-8495 Primavera Marketing, Inc...... 37...... 49 ...... 209-931-9420 ...... 209-931-9424 Dole Fresh Fruit Company ...... 2 ...... 7 ...... 818-879-6600 ...... 818-879-6628 Produce for Better Health Foundation ...... 77 ...... 12 ...... 302-235-2329 ...... 302-235-5555 Dole Fresh Vegetable Co...... 23 ...... 39 ...... 800-333-5454 ...... 831-754-5243 PuraVida Farms ...... 73 ...... 54 ...... 480-588-7012 ...... 480-686-9253 dProduce Man Software...... 16 ...... 13 ...... 888-PRODMAN ...... 650-712-9973 PuraVida Farms ...... 87 ...... 55 ...... 480-588-7012 ...... 714-686-9253 Duda Farm Fresh Foods, Inc...... 70 ...... 30 ...... 866-792-DUDA ...... 831-757-5078 Roberson Onion Co...... 58 ...... 21 ...... 912-375-5760 ...... 912-375-3610 Duda Farm Fresh Foods, Inc...... 53 ...... 31 ...... 866-792-DUDA ...... 561-978-5705 Ruma Fruit & Produce Co., Inc...... 24 ...... 69 ...... 800-252-8282 ...... 617-387-7894 Earthbound Farm ...... 30 ...... 44 ...... 888-624-1004 ...... 831-623-7886 SAGARPA - Embassy of Mexico ...... 48-49 ...... 83 ...... 202-728-1729 ...... 202-728-1728 East Coast Brokers & Packers, Inc...... 99...... 42 ...... 800-557-7751 ...... 863-869-9850 Sambrailo Packaging ...... 18...... 10 ...... 800-563-4467 ...... 831-724-1403 Eureka Specialties, Inc...... 85...... 53 ...... 213-488-6470 ...... 213-488-6480 Shuman Produce, Inc...... 57...... 16 ...... 912-557-4477 ...... 912-557-4478 Family Tree Farms ...... 37...... 37...... 866-FLAVOR-1 ...... 559-595-7795 Silver Creek Software...... 14...... 81 ...... 208-388-4555 ...... 208-322-3510 Four Seasons Produce, Inc...... 16 ...... 23 ...... 800-422-8384 ...... 717-721-2597 Stemilt Growers, Inc...... 37 ...... 50 ...... 509-662-9667 ...... 509-663-2914 Fresherized Foods ...... 34...... 62 ...... 817-509-0626 ...... 817-509-0636 Sun World International ...... 71...... 71 ...... 760-398-9430 ...... 760-398-9613 George Zaninovich ...... 89 ...... 74 Sweet Onion Trading Company ...... 60 ...... 15 ...... 800-699-3727 ...... 321-674-2003 Giannini Packing Corp...... 71 ...... 22 ...... 559-591-3758 ...... 559-591-5708 Tavilla Sales Company of L.A...... 82 ...... 56 ...... 800-421-9626 ...... 213-622-0004 Gills Onions ...... 61 ...... 63 ...... 800-348-2255 ...... 805-240-1932 Trinity Fruit Sales ...... 37 ...... 77 ...... 559-433-3777 ...... 559-433-3790 Giorgio Fresh Co...... 51 ...... 33 ...... 800-330-5711 ...... 610-429-3810 Umina Bros., Inc...... 79 ...... 48 ...... 805-488-6658 ...... 805-488-0976 The Giumarra Companies...... 41 ...... 38 ...... 509-663-4409 ...... 213-628-4878 United Fresh Produce Association ...... 31 ...... 8 ...... 202-303-3400 ...... 202-303-3433 Global Organic Specialty Source, Inc...... 28 ...... 64 ...... 877-952-1198 ...... 941-358-6551 Village Farms ...... 69 ...... 45 ...... 877-777-7718 ...... 610-429-6222 Grimmway Farms...... 15 ...... 27 ...... 661-845-9435 ...... 661-393-6458 VIP Marketing, Inc...... 83 ...... 72 ...... 213-833-7784 ...... 213-833-7788 Grower Alliance, LLC ...... 74 ...... 59 ...... 520-761-1921 ...... 520-377-9189 Well-Pict Berries...... 71 ...... 36 ...... 831-722-3871 ...... 831-722-6340 Al Harrison Co. Dist...... 74 ...... 46 ...... 520-281-1222 ...... 520-281-1104 West Coast Tomato, Inc...... 64 ...... 82 ...... 941-722-4537 ...... 941-729-6778 Heath & Lejeune, Inc...... 79...... 65 ...... 213-614-1909 ...... 213-614-6856 Zespri International ...... 39...... 24 ...... 650-368-2870 ...... 650-745-1419 L.G. Herndon Jr. Farms, Inc...... 56...... 66 ...... 912-565-7640 ...... 912-565-7158

98 PRODUCE BUSINESS • APRIL 2010 PLANT CITY, FL • MAPPSVILLE. VA YEAR-ROUND GROWERS, PACKERS AND SHIPPERS ROUND TOMATOES, VINE-RIPES, ROMAS, AND GRAPE TOMATOES

With the proper blend of the best of tradition and state-of-the-art technology, we take great pride in providing our customers with the very best tomatoes. Year-round—from Pallet to Plate, the choice is clear.

Batista Madonia Sr. President & CEO Evelyn M. Madonia, Executive Vice President/Secretary-Treasurer

Batista Madonia Jr. Rosemary Madonia, Stephen Madonia Sales Manager Comptroller All Growing Operations

GROWERS • PACKERS • BROKERS • SHIPPERS 800-557-7751 or 863-425-3500 Fax: 863-869-9850 Reader Service # 42 Reader Service # 40