July 7, 2016 Industry Newsletter
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JULY 7, 2016 INDUSTRY NEWSLETTER MARKET UPDATE Cucumbers: Eastern markets are just beginning to see more volumes TRANSPORTATION FACTS Tomatoes : The last fruit out of of cucumbers as Michigan, New Quincy and South Carolina will ship Jersey, and the Carolina mountains this week. Some of these lots have * The National Diesel Average get up and running. Cucumber quality challenges, as is normal for remained relatively stable this supply is also easing in the West, as season -ending tomato crops. Baja’s harvests are increasing and week, coming in at $2.42 per Available only in specialty Regional production areas are just Washington state growers are beginning and the volume that is gallon. food stores. But it didn’t take beginning the season. available is spread out. Tennessee, long forcolon cancer, and North Carolina and Virginia are all Summer Squash: California’s * The average price for a gallon of arthritis. It is likely to be fussy on tap to start in the next 5-7 days Central Coast area continues to eaters when they were nearly and should have nice fresh-crop diesel fuel is $.41 lower than the provide great volume and quality on quality available. same time last year. four years old. Summer squash. In the East, squash supply is also plentiful, as In the West, we expect to see vine- many local deals and major supply Cucumbers: Who eat a ripe round and roma volumes drop * Diesel prices dipped in all parts areas have product to ship. over the next few weeks. Both range of fruits and vegetables of the country except for the Southern and Northern Baja have may learn to enjoy healthy Eggplant: With Georgia still working Rocky Mountain region, where been in production, but the Southern fields and North Carolina in peak eating as they grow older, an areas are winding down now. The the price rose less than $.01 per production, the East has very good Australian study suggests. California mature greens are in solid gallon. availability on eggplant. Quality is production, having worked their way Researchers found that 14- very nice from both areas. With through early-pick quality concerns. more growers in the mix now, month-old babies who Grapes are available in good supply * Although the price is steady this Fresno has picked up the pace on regularly ate fruits and from Baja, but there have been eggplant production. Quality and week, California continues to some concerns with quality. vegetables were more likely condition are also very nice from have the highest-priced diesel to eat them and less likely to this area. Bell Peppers: Eastern markets now fuel at $2.80. The Gulf Coast be fussy eaters when they have good pepper volumes region keeps rolling with the best Chili Peppers: The East continues were nearly four years old available from North Carolina. With to have only light chili pepper price in the nation ($2.28 per the Carolina mountains and New and older. production underway. There’s a little Jersey also starting the season, gallon). product out of North Carolina, but availability is expected to remain many of the local deals are running Eggplant: Tomatoes first hit steady for at least the next few 10-14 behind normal. Availability * The WTI Crude Oil Price fell the market in the late nineties, weeks. In the West, we’re seeing should improve as more areas get Bakersfield’s pepper size drop and 5.0% this week, moving from they were a novelty available into production. In the West, we expect these farms to finish up in $49.88 to $47.43. continue to work through the only in specialty food stores. 10-14 days. Fresno has worked transition from Mainland Mexico to But it didn’t take long for through its crown picks and is now Baja and California local deals. The into XL and smaller fruit. However, * With the exception of Eastern people to fall in love with fruit coming out of the Mainland is quality is excellent with good color, these tiny treats. Australian tired and fraught with quality issues. North Carolina, trucks are nice shape and thick walls. Baja is still two weeks out from available in good or surplus study suggests. Researchers producing strong volumes and Green Beans: Although the last few supply throughout the country’s found that 14-month-old having all varieties available. Until weeks have been a struggle due to shipping regions. babies who regularly ate fruits then, supply is very fragmented and weather events in multiple growing limited on a daily basis. and vegetables were more areas, we should begin to see more likely to eat them and less beans over the next week. Local Hard Squash: Mainland Mexico is deals that are running late should likely to be fussy eaters when still shipping storage crop butternut begin to crank up and we’ll also see & spaghetti while California growing they were nearly four years more product from the major pro- areas are seeing excellent volumes old. duction areas of Michigan & upstate and quality on all varieties of hard New York. In the West, Watsonville/ squash. The East is sourcing from Salinas growers expect steady Summer Squash: Eat a larger local deals at this time. supply for the next 2-3 weeks. range of fruits and vegetables may learn to enjoy healthy ON THE HORIZON CONTENTS eating as they grow older, an News in the Grocery Trade - page 2 Produce Barometer-page 3 Australian study suggests. Spotlight on Lipman- page 3 July Calendar- page 3 Researchers Keep Your Eye on the Consumer- page 4 National Weather Spotlight- page 4 Restaurant Industry News- page 5 Pack Your Bags - page 5 they were a novelty available who regularly ate fruits and eat them and less likely. Lipman Produce www.lipmanfamilyfarms.com | PHONE 239.657.4421 | FAX 239.657.6951 1 1 JULY 7, 2016 INDUSTRY NEWSLETTER News in the Grocery Trade Millenials Driving the Sales of Grocery Prepared Foods By: RH Editors, www.restaurant-hospitality.com, July 5, 2016 A recently released report from and barbeque. Grocery stores meals and by creating branded market researchers NPD Group are aiming to cater to all dining retail products. confirms the notion that needs, including hot, custom- “Creating family-size meals restaurants’ competition for prepared grilled meat, food directly competes with grocery millennials’ dollars stretches bars, soups, and sushi,” notes stores’ competitive family- beyond other restaurants to NPD. centered positioning,” notes grocery stores. “Supermarkets Allen, citing the success of are raising the bar on their What advantages, if any, do “Family Meals to Go” at foodservice offerings and by grocers have over restaurants operations such as Bob Evans doing so are attracting the and Mimi’s Cafés. when it comes to foodservice? attention of the coveted Perceived healthfulness, for Millennials,” states the report, one. “Consumers rate visits to Allen adds that restaurants can titled “A Generational grocerants higher than maintain their competitive Study: The Evolution of traditional quick service advantage through the following Eating.” strengths: restaurants (QSRs) on variety and healthy options,” NPD • Customization. 62 percent of “Restaurant-quality and fresh points out, adding that these two consumers believe grocery food, chef-driven menus, in- attributes are among the most stores do not offer customizable store experiences have given important when it comes to meals. “Restaurants still have rise to the Grocerant and the edge in being able to motivating customers to inspiration to Millennials to visit purchase prepared foods and prepare food exactly as and spend,” NPD explains. when it comes to their consumers want it – especially “Millennials’ interest in the satisfaction with these in the ever-growing fast casual benefits and experience purchases. Grocery prepared sector,” points out Allen. supermarket foodservice offers foods are also rated higher in • Convenience. “Grocery stores will continue to be strong over the areas of “freshness” and aren’t considered convenient the next several years,” says “quality”—areas of particular unless the consumer already David Portalatin, v.p., industry importance to millennials. happens to be there,” writes analysis at NPD Group. “Give Allen who points out that the Millennials what they want— Beyond the food itself, statistically, customers rarely fresh, healthier fare and a millennial-savvy grocers are “go to grocery stores with the decent price—and they will understanding the importance of sole intention of getting a come.” the “experience” to the young prepared dinner.” adult cohort. More retailers are • Quality. Although half of In -store dining and takeout of allocating space for consumers think prepared prepared foods from grocers “comfortable, casual seating for foods’ quality at grocery stores has grown nearly 30 percent in-store dining and some a full- has “greatly improved” since since 2008, accounting for 2.4 service restaurant,” notes NPD 2010, “40 percent of consumers billion foodservice visits and $10 would like name-brand foods at billion in consumer spending in Restaurants maintain an edge grocery or retail restaurants, 2015, according to NPD’s Restaurants can take comfort in which—in less polite terms— research. translates to wishing the food the fact that supermarkets are far from becoming dining were higher quality,” points out Furthermore, more than 40 destinations. Moreover, census Allen. percent of the U.S. population data notes that Americans, for purchases prepared foods from the first time, spent more at The bottom line: Millennials are grocery stores and, while still eating out (3.4 times per restaurants ($54.9 billion) than millennials use grocery stores on groceries ($52.5 billion). week) more than non-millennials less than other generational Consultant Aaron Allen, (2.8 times per week), which is groups, retail foodservice principal, Aaron Allen & good news for restaurants that appears to be gaining traction Associates, offers this reminder: keep the need and wants of with them.